During an eight-minute conference call on Monday, Bally’s Corp stakeholders provided an update regarding their permanent casino project in Chicago. The call featured comments from Chairman Soo Kim and Wanda Wilson, chair of the Bally’s Chicago board.
This brief meeting followed Bally’s announcement to alter the construction schedule for certain non-gaming elements of the project, stemming from the city's legalization of video gaming terminals (VGTs) earlier this year. Kim emphasized that the call's main goal was to reiterate the company’s commitment to Bally’s Chicago and correct “inaccurate reports” claiming that construction had stalled or slowed since an update in early August.
“Construction continues every day, and there are approximately 1,000 skilled tradespeople working on the construction of the permanent Bally’s Chicago resort,” Kim stated.
He affirmed that the casino remains on track to open in early 2027 but mentioned that the sequence of certain development elements is being adjusted. Kim noted that Bally’s is “over-delivering” on its commitments to the city and has reset the timeline to align with its Host Community Agreement. He also announced plans to arrange tours of the construction site for investors and shareholders.
“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 concluded. “And let me say this again – we remain fully committed to Chicago.”
In earlier comments to the Chicago City Council’s License Committee, Bally's President and interim CFO George Papanier shared more detailed plans. He indicated that the company will deliver the event center, 100 hotel rooms, and the necessary food and beverage components by early 2027. However, Bally's is reassessing about 12% of the project's planned amenities due to potential competition from video gaming terminals, while the ultimate plan calls for a total of 500 hotel rooms.
The city's legalization of VGTs became effective in January and has been a contentious issue since, with Mayor Brandon Johnson opposing the move but ultimately overridden by council members. The mayor has not publicly commented this summer on whether he believes Bally’s will reach its projected opening in the first quarter of 2027. However, Johnson expressed in March that his administration is committed to projects, like Bally’s Chicago, that promote economic development and job creation across multiple neighborhoods.
“We appreciate Bally’s partnership and the thousands of construction workers helping bring Bally’s Chicago Casino to life – a major investment in our city’s future,” Johnson stated in a social media post.
Earlier this year, the Illinois Gaming Board approved 65 VGT license applications in the city. VGTs are notably the highest-grossing gaming segment in Illinois, providing significantly more revenue and taxes than traditional casinos. Papanier noted that the components of Bally's Chicago being revised are “all in conjunction with the proliferation of VGTs.” He explained that while the current number of licenses is limited, a broad expansion could impact casino top-line revenue by 30% to 50%, making it “irresponsible” to proceed with construction without a clearer understanding of the evolving landscape.
On Monday, Bally's stock rose by 7% to $9.84, although shares had previously dropped 30% in the past month due to uncertainties in Chicago and concerns about the company's growth highlighted in its Q2 earnings report. The former CFO, Mira Mircheva, resigned on September 4, leaving Papanier to take up the role temporarily.
The VGT dispute and construction adjustments are recent developments in a tumultuous timeline for Bally's, which secured Chicago’s sole casino license in 2022. Previous construction halts included issues with debris overflow and unapproved contractors. Additionally, the company faced an $800 million funding deficit, which was eventually addressed through a financing agreement with Gaming and Leisure Properties, while potential impacts on city water lines led to a significant redesign of the hotel plans.
At one point, the Illinois Gaming Board ordered a work stoppage at the site after reports linked an unapproved dumpster service to organized crime.
Bally's received two years of extensions for the permanent project. Although state law permits temporary licenses for two years, in 2023 the Illinois Gaming Board granted a three-year extension, pushing the deadline to this September. Recently, an additional year's worth of extensions was included in the state's omnibus revenue bill passed in June.
If the latest extension had not been granted, Bally's would have had to shutter its temporary casino at Medinah Temple until the permanent location was completed—a move that would have resulted in several months without revenue. However, Kim previously indicated that such a closure would not be “the end of the world.”
Meanwhile, Bally’s is also advancing on a larger project in the Bronx, with a $4 billion resort planned for New York City. The company was one of three license winners last year, alongside Resorts World New York City and Hard Rock’s Metropolitan Park.
On Monday, Bally’s declared that it has secured $560 million in financing from WhiteHawk Capital Partners to further develop the Bronx project and for general corporate purposes. This funding is set to close within the current 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 remarked. “The additional liquidity provides us greater flexibility for other capital opportunities.”
Bob Louzan, managing partner at WhiteHawk Capital Partners, noted that the financing exemplifies the firm’s capability to design flexible capital solutions for complex projects to support Bally’s pre-construction efforts as they pursue broader financing plans.
Bally's indicated in its application materials for New York that construction is projected to begin “eight to nine months” after securing the license, which is expected this month, with a single-phase opening targeted for sometime in 2030, provided timelines are maintained.
