Bally’s Secures Financing for Construction of Chicago Casino Complex

By Jane Shaw Senior Editor Updated: 07/22/2024

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Chicago Casino Complex

It has recently been confirmed that Bally’s Corporation has secured the funding needed to progress with its plans to establish a $1.7 billion casino complex in the River West area. The news comes shortly after Bally acquired the Freedom Center printing plant, marking a crucial milestone in the upcoming project.

According to reports, the company has secured funding through a partnership with Gaming and Leisure Properties Inc. GLPI has committed $940 million toward the construction of the permanent casino. This partnership is part of a wider plan to generate over $2 billion through transactions, including sale-leasebacks of properties in Kansas City and Shreveport.

It was also announced that GLPI will acquire the Freedom Center site for $250 million.

Easing Doubts About the Project

Following concerns over financial capabilities and a potential $800 million funding gap that was revealed earlier this year, the latest financing agreement has eased doubts about the project’s feasibility.

The concerns that were previously highlighted drew skepticism from Chicago Mayor Brandon Johnson last month in relation to the project’s completion. However, the announcement of secured funding has marked an important step toward meeting the targeted opening in September 2026.

Mayor Johnson said,

The City is pleased with this development concerning the financing and construction of Bally’s Permanent Chicago Casino.

The casino complex is set to transform the local economy by creating around 3,000 construction jobs and the same number of permanent positions once the venue is operational. This spells great news for the local jobs market, as a wide range of positions are set to be created.

Bally’s has also redesigned its initial plans for a 500-room hotel tower, now relocating it south of the main casino structure to avoid any issues with city water pipes. This revision is still awaiting approval from the city’s planning department.

Optimism from Bally’s President

George Papanier, who is the President of Bally’s Corporation, expressed optimism about the project timeline. He spoke about the decision to relocate the hotel tower, which was a move initiated by the architectural firm HKS to address infrastructure concerns.

Bally’s has already opened a temporary casino facility at the Medinah Temple, which has enjoyed success. Despite experiencing an 11 percent drop in revenue last month, the temporary location celebrated its millionth visitor, reflecting ongoing interest in the venue.

In the first half of 2024, the temporary casino generated $62.8 million in adjusted gross receipts and contributed $6.8 million in local tax revenue.

Despite these latest advancements, Bally’s continues to face challenges. This includes a buyout offer from its largest shareholder, Standard General, which owns 26 percent of the company. The board, assisted by Macquarie Capital, is currently reviewing this proposal.

Many believe that once the permanent casino opens its doors, it will have a huge positive impact on the local economy and could mean growth in the River West area. The opening is set to bring more tourism to the area, which will have a positive effect on other local businesses.