Bally’s Temp Casino in Chicago May Not Be Temporary

Article by : Erik Gibbs Nov 6, 2023

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The leaders of Chicago’s inaugural casino project claim they are adhering to their original plan to vacate their temporary Medinah Temple venue within three years. However, recent legislative developments in Springfield could potentially extend Bally’s presence in River North well beyond the initially envisioned 2026 relocation.

On October 24, the Illinois Senate approved a bill aimed at amending the state’s gambling law, which currently restricts new casinos to operating at a temporary site for 24 months while they construct a permanent facility.

Currently, operators can apply to the Illinois Gaming Board for a 12-month extension, as Bally’s did recently, receiving approval to keep Medinah open until September 9, 2026.

The bill, sponsored by State Senator Bill Cunningham, a Democrat from Chicago, would grant casino operators the ability to request extensions for temporary stays for any duration that the Board deems necessary or appropriate.

The Illinois House is expected to consider the bill during the General Assembly’s veto session this week. The amendment was introduced upon request from officials in Waukegan, where Full House Resorts Inc. has faced delays in constructing its permanent casino due to an ongoing lawsuit involving a rejected bidder for the sought-after project in the northern suburb.

Notably, Bally’s lobbyists were not involved in the drafting of this legislation. The bill was primarily focused on addressing Waukegan’s situation.

State Senator Bill Cunningham, who oversees most gaming-related legislation within his chamber’s Democratic supermajority, clarified that Bally’s extensive efforts to acquire the Chicago Tribune printing facility and their ambitious plans to transform it into a $1.34 billion casino were not a central consideration when crafting the bill.

Nevertheless, Cunningham acknowledged that the bill’s adaptable language might offer potential benefits to Bally’s casino project in the future. He clarified that the bill could also function as a safety measure for the Chicago project if needed. Bally’s spokesperson chose not to comment on the bill.

The legislation, which includes various adjustments to gaming laws, passed the Senate with a vote of 50-7, and no debate took place during the proceedings.

Cunningham expressed confidence that the bill would face no significant obstacles in the state House of Representatives, where it is chiefly sponsored by State Representative Lisa Hernandez, a Democrat from Cicero who also chairs the Illinois Democratic Party.

As part of their agreement with Tribune Publishing, Bally’s is prohibited from commencing construction at the permanent site until July 2024. This leaves the company slightly over two years to finalize its extensive 505,000-square-foot mega-casino and hotel tower located at 777 W. Chicago Ave.

During a recent meeting, regulators expressed concerns about the ambitious schedule to Bally’s Chicago general manager, Mark Wong. Wong provided reassurance to the gaming board, saying, “We’re all very confident that we’ll meet the timeline.”

However, it is a massive project and will likely require every bit of the two to two-and-a-half years allotted for construction.

Bally’s leadership reiterated their optimism during a quarterly earnings call, emphasizing their expectation of the permanent casino’s completion and opening in September 2026. Chairman Soo Kim identified the Chicago project as their “highest priority.”

Bally’s is currently leasing the Medinah Temple until December 2026, with the deal ensuring rent payments of $16.5 million to the prominent River North developer, Albert Friedman. This lease can also be extended through early 2029.