By
Jane Shaw
Senior Editor Updated: 12/02/2023
We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.
Bally’s Casino in Chicago
According to recent reports, Chicago’s plans to host a $1.7 billion Bally’s integrated casino resort could be facing significant challenges. This is according to City Alderman Brian Hopkins, who recently expressed doubts about the project’s feasibility. The development was aiming for a completion date of September 9, 2026.
In 2019, Illinois lawmakers, along with Governor JB Pritzker, decided to revitalize the state’s infrastructure and support essential city services like police and fire pension programs by expanding gaming. This expansion included an integrated resort casino in downtown Chicago and smaller casinos in the suburbs.
Former Mayor Lori Lightfoot selected Bally’s Corporation for the downtown casino project in May 2022. Bally’s beat off other competitors such as Hard Rock International and Rush Street Gaming, and this was largely due to its promising offer to the city. Upon selection, Bally’s paid the city $40 million and committed to an annual $4 million payment, alongside gaming and other taxes.
The proposed Bally’s Chicago casino resort promises significant economic benefits. It is expected to create employment for 3,000 people, and it is set to feature a sprawling gaming floor with 3,400 slot machines, 170 table games, and a sportsbook. Plans also include a 500-room hotel, six restaurants, a 3,000-seat theater, and an outdoor amphitheater.
However, according to reports, financial challenges have emerged. Bally’s was allowed to operate a temporary casino in Chicago to fund the larger permanent resort. The provisional gaming venue at Medinah Temple commenced operations in September, and it initially showed promising revenue.
However, there has reportedly been a noticeable dip in gaming revenue and visitor numbers since it opened, and this has raised concerns about the project’s financial viability.
Alderman Hopkins, a critic of the selection process, pointed out these financial issues during a recent City Council meeting. He criticized the choice of Bally’s as a major error by Lightfoot and the City Council. According to Hopkins, the underperformance of the temporary casino indicates that Bally’s might lack the financial strength to continue with the $1.7 billion permanent project. He said:
They don’t have the money to do it. They were counting on the cash flow from the Medinah Temple site to fund the construction project, and right now, they don’t have it. The signs are on the wall that they’re going to stay (at Medinah) longer.
Hopkins also previously warned that Bally’s might be too inexperienced for such a large-scale project and that this also cast doubt on its viability. The company is now under the control of billionaire Soo Kim, and Hopkins said that the operator had never taken on this type of large-scale project independently.
This development raises questions about the future of Chicago’s downtown casino and its potential economic impact. It also highlights the challenges and risks involved in large-scale urban development projects, particularly those reliant on volatile revenue streams like gaming.
If there are any issues, it will undoubtedly result in huge disappointment for not only the operator but also Chicago residents and city officials.
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