- Bally’s (BALY) has secured $940M in construction financing for a 34-story hotel tower at its Chicago casino project.
- The updated plan relocates the hotel tower to Ohio Street and accelerates the timeline for project completion.
- The project aims to address an $800M funding gap to meet a September 2026 completion deadline.
Bally’s has secured $940M in financing to support the construction of a 34-story hotel tower for its ambitious Chicago casino project, according to the Chicago Sun-Times.
The Updated Plan
The Rhode Island-based company revealed updated renderings and a refreshed vision for the River West site, which is now focused on Ohio Street and the Chicago River. Bally’s is also promising completion by September 2026.
The initial plan positioned the massive tower closer to Chicago Avenue and the river, but this was changed to avoid damaging city water mains. The new site plan allows for the tower to be completed in a single phase rather than the originally planned two-phase approach.
The $940M financing deal with Pennsylvania-based Gaming and Leisure Properties Inc. (GLPI) is expected to cover an $800M funding gap, which had been acknowledged by Bally’s. This latest round of financing should allow for on-time completion of the entire gaming campus at 777 W. Chicago Ave.
Deal Details
Through the deal, GLPI is providing Bally’s with over $2B in total financing, covering lease-back acquisitions on some of Bally’s 15 other casino properties nationwide.
Bally’s intends to fund the remaining development expenditures through casino revenue and an IPO of shares in the Chicago casino to minority businesses, although details have yet to be announced.
Not addressed in Bally’s announcement was Chairman Soo Kim’s ongoing effort to take the publicly traded company private. A committee has been reviewing his $15-per-share buyout offer since March.
The financing deal with GLPI also includes a $20M per year lease-back arrangement, initially for 15 years.
From The Horse’s Mouth
“With keys to the property in hand, the new financing secured, a site plan that exceeds the original, and demolition set to start this summer, let there be no doubt that Bally’s Chicago Casino and Hotel will soon rise up along the Chicago River,” Bally’s President George Papanier said.
Meanwhile, Mayor Brandon Johnson’s office was satisfied with the development, stating, “We look forward to reviewing the updated plans and proceeding through the review process with the Department of Planning and Development.”
Some Background
Selected by former Mayor Lori Lightfoot over more experienced casino operators, Bally’s faced skepticism over its ability to deliver on the $1.34B project intended to support Chicago’s police and firefighter pension funds.
Bally’s took control of the property at Chicago Avenue and Halsted Street earlier this month. Demolition of the former Chicago Tribune printing plant is expected to take up most of the year.
In the meantime, the company has been operating a temporary casino at the historic Medinah Temple since September. This has drawn over a million visitors but fell short of revenue projections.
The temporary casino generated a net profit of $93.2M in its first nine months, contributing $9.9M to the Windy City. Lightfoot had projected nearly $13M from the casino by the end of 2023, while Mayor Johnson anticipated $35M this year. However, it only netted $6.8M through June.
What’s Next
Under state gaming law, Bally’s must move from the temporary casino to the permanent site by September 9, 2026. In summary, the updated plan includes a 3K-seat theater, 6 restaurants, a 2-acre public park, and a 3.3K-slot casino with 173 table games.
