Bally’s gets $940m financial commitment for revised Chicago casino

Article by : Charles Perrin Jul 15, 2024

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Bally’s plans to bring a new casino to Chicago have been crystallized after receiving significant financial backing from Gaming and Leisure Properties International.

Real estate investment trust fund GLPI will pump $940 million into the project, and they will stump up around $2.07 billion in total.

Indeed, the contours of Bally’s relationship with GLPI has been redefined after signing a binding term sheet agreement to press ahead with their project.

In terms of the breakdown of the funding, the $940m will be covered by an amended master lease agreement, whereby rent will be set at $20m a year. This will initially run for a term of 15 years, but there will be the option to activate clauses for renewals.

Bally’s also intends to sell and lease back its Twin River Lincoln property in Rhode Island to GLPI, and this is expected to raise a further $735m.

When Bally’s won the original bidding process in May 2022 to develop the first land-based casino in Chicago, it had fended off competition from Rush Street Gaming and Hard Rock.

But the risk of spiraling costs had created doubt over whether Bally’s had the financial capacity to fulfill their ambitions.

However, despite such concerns, Bally’s has remained true to its word that it could raise the funding it needs by the summer of 2024.

New artist renderings show that the casino building will sit adjacent to a 500-room story hotel tower at the Chicago River location.

The revised plans detail the casino will house 3,300 slots, 173 table games, and VIP gaming areas.

Discussing the site, Christopher Jewett, senior vice president for corporate development of Bally’s, said: “The improved site plan for Bally’s Chicago delivers all 500 hotel rooms upfront as part of a single-phase development, protects all essential infrastructure and elevates the grandeur of our much-anticipated permanent casino development.

“We look forward to working with city officials to secure approval of our revised site plan.”

Moreover, Bally’s has earmarked an opening date of September 2026 for its new Chicago casino, and it remains confident of achieving that goal.

Bally’s has confirmed that the project will generate roughly 3,000 construction jobs and 3,000 casino roles when the venue opens.

While the proposed venue has been a long time in the making, GLPI’s financial backing gives them reason to approach the future with optimism.