This week, Bally's Corp halted construction on the non-gaming components of its ambitious $1.7 billion casino project in Chicago. This pause puts significant pressure on city officials, especially after the recent budget change that lifted restrictions on video gambling terminals. Meanwhile, Bally's appears to be facing substantial challenges in Las Vegas.
In April 2021, Bally's acquired the former Tropicana Las Vegas operations for $148 million, completing the deal in September 2022. Following the acquisition, Bally's and landlord Gaming and Leisure Properties (GLPI) agreed to demolish the Tropicana in 2024 to pave the way for a new MLB stadium for the Oakland Athletics. In exchange, Bally's secured the right to develop a new resort on the remaining land.
For almost a year, Siberian opiates remained vague about its plans for the site while exploring other projects, including a casino in New York City and a potential buyout of Australia's Star Entertainment.
Implementation began last September when Bally's announced a mixed-use development featuring 3,000 hotel rooms in two towers, a 2,500-seat entertainment venue, and over 500,000 square feet for retail and dining. Renderings indicate that the development will surround the A's stadium. By December, Bally's filed plans calling for a four-phase construction timeline slated for completion in December 2030 at a cost of $1.19 billion.
With the A's stadium project progressing toward a spring 2028 launch, questions arise about Bally's commitment and capability to follow through on its plans.
Since the beginning of the year, Bally's has clarified that its immediate focus is on the retail-entertainment district rather than the casino and hotel components. Chairman Soo Kim stated at the ICE Barcelona conference in January that they prioritize developing the retail district even before constructing the integrated resort and casino.
This focus was echoed by CFO Mira Mircheva and attorney Dan Reaser during a June meeting with the Nevada Gaming Commission. Reaser clarified that the 2028 timeline refers specifically to the stadium, not Bally's development. He remarked, "The April deadline of 2028 is for the stadium to open… the timeline does not include the towers, which will come later."
Concerns loom in Las Vegas about the A's opening a new stadium amid ongoing construction. A June report revealed that the team might need alternative plans to establish its infrastructure if Bally's delays persist; these additional developments could cost the A's an estimated $100 million. Las Vegas Convention and Visitors Authority CEO Steve Hill remarked that Bally's doesn't seem to have the necessary financing and pressed the company for a financing plan by August.
When questioned about this ultimatum, Bally's declined to respond, and the LVCVA did not comment, either.
According to its recent SEC filing, Bally's reported $559.3 million in cash and equivalents against a long-term net debt of $4.3 billion. The company faces scrutiny for reporting delays after submitting a Form 12b-25 indicating a late filing for its second-quarter results. Bally's shares saw a slight increase, hitting $13.70, although they have dropped roughly 18% this year.
GLPI, Bally's partner in the Las Vegas venture, has invested significantly in its projects nationwide. Bally's began leasing the Tropicana site from GLPI in 2022, with modified leasing terms established after the planned demolition in 2024. The lease spans 50 years with potential renewals up to 99 years, although Bally's noted that the renewal options are not currently expected to be exercised.
GLPI has pledged up to $125 million for shared developments on the Las Vegas site deemed mutually beneficial. During a recent earnings call, GLPI COO Brandon Moore mentioned that Bally's is approaching a definite plan for crucial infrastructure supporting the stadium, which includes access roads and utility conduits. He stated, "There may be an opportunity for us to invest more in that property and infrastructure in the future, but we are not prepared to exceed the $125 million commitment at this time."
