One week after buying the Freedom Center printing plant, Bally’s secured financing to construct a $1.7 billion on line casino complicated on the 30-acre River West website. The firm introduced a take care of Gaming and Leisure Properties for $940 million to fund the development of the permanent casino.
Redesign and approval:
Bally’s has redesigned its deliberate 500-room lodge tower, shifting it south of the on line casino to keep away from metropolis water pipes, pending metropolis planning division approval. George Papanier, president of Bally’s Corporation, confirmed the intention to fulfill the September 2026 opening date, because the Chicago Tribune reports.
The financing package deal and revised website plan handle issues about Bally’s monetary functionality to construct the everlasting on line casino. Bally’s gained the bid to construct Chicago’s first on line casino in 2022, that includes an exhibition corridor, lodge, theater, eating places, and gaming positions.
Bally’s opened a short lived facility at Medinah Temple in September, with plans to open the everlasting on line casino by September 2026. Earlier this 12 months, Bally’s introduced the necessity to relocate the lodge tower from its authentic deliberate location because of infrastructure issues.
The new website plan by HKS entails a single-phase growth, relocating the lodge tower south of the leisure complicated, away from infrastructure points. Gaming and Leisure Properties, which owns 65 places throughout 20 states, will fund the challenge.
Bally’s expects to lift over $2 billion by means of transactions with Gaming and Leisure Properties, together with sale-leasebacks on properties in Kansas City and Shreveport. Additionally, Gaming and Leisure Properties is buying the Freedom Center website for $250 million.
Addressing funding gaps:
Concerns about funding surfaced in February when Bally’s revealed an $800 million hole to cowl the remaining prices. Analysts steered a good credit score market and Bally’s debt-heavy stability sheet would possibly delay or downsize the challenge.
Chicago Mayor Brandon Johnson expressed doubts final month in regards to the challenge’s feasibility. However, Friday’s financing announcement represents a big step towards the purpose.
“The City is pleased with this development concerning the financing and construction of Bally’s Permanent Chicago Casino,” Mayor Johnson acknowledged. The challenge is essential for assembly the monetary targets of each the town and Bally’s.
Bally’s momentary on line casino noticed an 11% income drop final month however had a 1% enhance in admissions. The momentary facility celebrated its millionth customer final month. Statewide on line casino income was down practically 4% in June.
Through the primary six months of 2024, Bally’s Chicago generated $62.8 million in adjusted gross receipts and $6.8 million in native tax income. Bally’s was projected to generate $243 million in adjusted gross receipts and $35 million in gaming taxes for Chicago this 12 months.
Long-term development:
Long-term development hinges on the deliberate everlasting on line casino. Bally’s paid Tribune Publishing $150 million to vacate the 43-year-old Freedom Center by July 5 to interrupt floor on the brand new on line casino complicated.
Bally’s took possession of the location final week, with preparations for demolition starting. The Chicago Tribune relocated its newsroom to the historic Brooks Building.
Despite the financing announcement, Bally’s is navigating an ongoing buyout supply from its largest shareholder, Standard General, which owns 26% of Bally’s. The board is evaluating the supply with Macquarie Capital.
Bally’s and Gaming and Leisure Properties entered a binding time period sheet for $940 million development funding for the Chicago challenge. GLPI’s principals have over three many years of development growth expertise within the gaming trade.
The challenge’s demolition contractor started getting ready the location for demolition. The growth will generate roughly 3,000 development jobs and 3,000 everlasting on line casino jobs.
The Chicago Community Builders Collective, a minority-led development partnership, will implement the improved website plan. Jimmy Akintonde, CCBC member, expressed pleasure in regards to the challenge’s optimistic influence on Chicago within the firm’s press release.
