Bally’s Faces Increased Pressure in Chicago, Las Vegas with New York Project on Horizon

Bally’s Corp has faced mounting pressure this summer regarding its projects in Chicago and Las Vegas while also preparing for its upcoming New York resort. In Chicago, the company secured an extension of its temporary license before the state legislature adjourned on June 1, allowing construction to continue on its $1.8 billion permanent casino. However, the approval of video gaming terminals (VGTs) within city limits has introduced new challenges. Chicago Mayor Brandon Johnson's budget proposal was overridden last year, enabling a budget that estimates $6.8 million in revenue from VGT licenses, anticipating that around 80% of the 3,300 eligible liquor licensees would apply. Nearly 300 venues have proceeded to apply for VGTs, according to the Chicago Sun-Times. During a city council committee meeting on the issue, Bally's proposed to establish slot lounges at O'Hare and Midway airports, suggesting that such lounges might bring in significant revenue to offset the expected losses. "We believe one lounge can generate approximately $5 million in actual gaming and admission taxes, which go directly to the city," stated Christopher Jewett, Bally's senior vice president. The implications of legalizing VGTs could affect Bally’s anticipated revenue, potentially reducing it by nearly $75 million annually and risking about 1,000 jobs tied to its casinos. Bally's has a community agreement that includes a $4 million yearly payment to the city, and legalizing VGTs could challenge such commitments. In Illinois, VGTs have outperformed casinos in revenue generation, with VGTs accounting for $1.4 billion net terminal income versus $889.5 million from casinos in 2026. "Had we known that, within just a few years, this body would reverse course and allow an alternative form of gambling that breaches the agreement, we would never agree to the numerous commitments, all of which we’ve held up," Jewett mentioned during the city council meeting. In Las Vegas, Bally’s is under scrutiny as it moves forward with its $1.2 billion mixed-use development on the Strip, particularly as the Oakland Athletics prepare to build their MLB stadium nearby, expected to open in spring 2028. While progress is being made on the stadium, concerns linger about the timeline and financing for Bally's portion of the shared site. Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, expressed doubts about Bally's financial readiness to develop the site, which could lead to additional costs if the team takes matters into its own hands. Bally's confirmed that the 2028 deadline pertains only to the stadium, stating that their hotel and casino are unlikely to be finished by then. "The April 2028 timeline is for the retail district, parking garage, utilities and plaza, but not the towers that come at a later date," stated attorney Dan Reaser during a Nevada Gaming Commission meeting. Looking ahead, Bally’s won a lucrative downstate New York casino license last winter to construct a $4 billion integrated resort in the Bronx, which rivals its projects in Chicago and Las Vegas. Publicly available materials indicate construction could start about eight to nine months after receiving the license, so potentially in August or September. Bally’s has expressed its eagerness to commence work on the New York project sooner rather than later. Notably, Bally’s has also made several strategic acquisitions, including companies like Intralot and Evoke, and has secured a majority stake in Star Entertainment. The operator concluded Q1 with $559 million in cash, maintaining a long-term net debt exceeding $4.3 billion and $2.2 billion in lease liabilities. Although its stock has increased by roughly 50% over the past year, it has faced a downturn of 15% in the last six months.