During an eight-minute conference call on Monday, Bally's Corp officials provided an update regarding the company's permanent casino project in Chicago, featuring remarks from Chairman Soo Kim and Wanda Wilson, chair of the Bally's Chicago board.
This brief call followed Bally's recent announcement about adjusting the construction pace for the project's non-gaming aspects, a decision made in light of the city’s legalization of video gaming terminals (VGTs) earlier this year.
Kim emphasized that the aim of the call was to "reiterate our deep commitment to Bally’s Chicago" and address "inaccurate reports" that suggested construction had stalled following an update in early August. He stated, "Construction continues every day, and there are approximately 1,000 skilled tradespeople working on the construction of the permanent Bally's Chicago resort."
The casino remains on track for an early 2027 opening, according to Kim. However, he noted that Bally’s has adjusted the sequencing of certain development elements to better align with its Host Community Agreement, asserting that the company is actually "over-delivering" on its commitments. Tours of the construction site for investors and shareholders are also expected soon.
"Investors should view our actions through a straightforward lens: We are protecting the value of significant investments we’re making in Chicago while faithfully executing our contractual obligations," Kim remarked. "And let me say this again — we remain fully committed to Chicago."
On this call, Kim's comments were less extensive than those made to the Chicago City Council’s License Committee the previous week. At that meeting, Bally’s President and interim Chief Financial Officer George Papanier indicated that the company would deliver the events center, 100 hotel rooms, and required food and beverage components by early 2027, as reported by the Chicago Sun-Times. However, about 12% of the project’s planned amenities are under reassessment due to potential competition from VGTs. The hotel is planned to eventually include 500 rooms.
The Chicago City Council legalized VGTs in its latest budget, which went into effect in January. Although Mayor Brandon Johnson opposed this decision, the council's majority moved forward. The issue remains contentious, but the Illinois Gaming Board has approved 65 VGT license applications in the city. Currently, VGTs in Illinois generate significantly more revenue and taxes than land-based casinos.
Papanier remarked that the aspects of Bally's Chicago being “reset and re-contemplated” are directly related to the increase of VGTs. He noted that while the number of licenses is currently limited, widespread proliferation could lead to a "30 to 50% impact on top-line revenue" for the casino, making it "irresponsible" to press on with construction without clarity on the situation.
Bally's stock rose by 7% on Monday to $9.84, following a 30% decline over the past month due to uncertainties in Chicago and concerns about the company’s future growth outlined in its Q2 earnings report. Former CFO Mira Mircheva resigned on September 4, with Papanier stepping in on an interim basis.
The ongoing VGT dispute and construction adjustments are just the latest hurdles for Bally's since it secured Chicago's sole casino license in 2022. The company has faced work stoppages due to debris overflow and unapproved contractors, as well as an $800 million funding gap that was filled through financing with Gaming and Leisure Properties. Additionally, potential conflicts with city water lines led to major redesigns of the hotel plan.
Bally's has been granted two years of extensions for the permanent project. Although state law permits two-year temporary licenses, the Illinois Gaming Board approved a three-year extension in 2023, pushing the deadline to this September. Ultimately, Bally’s received an additional year of extensions included in the state’s omnibus revenue bill passed in June.
Had this last extension not been granted, Bally's would have had to close its temporary casino at Medinah Temple until the permanent facility was completed, resulting in months without revenue. Kim previously stated at the East Coast Gaming Congress in April that a closure of the temporary site was "not the end of the world."
In other news, Bally’s is moving forward with its $4 billion Bally’s Bronx resort project in New York City. Having won one of three NYC licenses last year, alongside Resorts World New York City and Hard Rock’s Metropolitan Park, Bally’s announced it has secured $560 million in financing from WhiteHawk Capital Partners to support further development and general corporate purposes. This funding is expected to close this quarter.
“This important financing allows us to progress the pre-construction planning process so that we are ready to complete the remainder of the capital raise and remain on schedule,” Kim stated. He added that this liquidity offers greater flexibility for other capital opportunities.
Bally's plans to begin construction "eight to nine months" after securing its license, which aligns with this month. If timelines are adhered to, the project may see a single-phase opening in 2030.
