Bally’s Announces $940 Million Financing Deal For Chicago CasinoCasino Expected To Open By 2026 |
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After concerns about the future of a possible permanent Chicago casino, Bally’s Corp. announced last Friday that the company had received $940 million in financing for the project from a Pennsylvania real estate firm.
The announcement came as the company released artist renderings of the project, which now includes a casino resort with a 34-story hotel tower in the city’s River West area on Ohio Street. Bally’s announced an $800 million funding gap for the project this year, but the financing deal looks to shore up concerns on the company’s ability to complete the project.
“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 noted in a statement.
Details On The Deal
Bally’s also announced that the tower would be completed in one phase rather than the two phases that were initially planned. The $1.3 billion project is expected to be finished by September 2026.
As part of the financing deal, Gaming and Leisure Properties Inc. will take over ownership of the property and lease back the land to Bally’s for $20 million per year for an initial 15-year contract. The company is also investing more than $1 billion as part of other leaseback arrangements, which have become popular options for gaming companies in recent years.
Mayor Brandon Johnson has been dubious about the prospects of Bally’s being able to complete the project, but seemed pleased with the announcement that the casino plan was moving forward.
“We look forward to reviewing the updated plans and proceeding through the review process with the Department of Planning and Development,” he said.
The company opened a temporary casino last September in the city, but the permanent casino project has faced several obstacles over the last year. That has included having to move the location of the hotel tower after engineers discovered the project could damage city water lines running under site.
The project will also include a casino with 3,300 slot machines and 173 table games, a 3,000-seat theater, several restaurants, and a two-acre public park.
In December, news broke that the project is facing multiple investigations. Critics have alleged that there were issues about transparency, casino financing irregularities, and conflicts of interest among some involved representing the city. In March, a major shareholder also announced a bid to take over the company.
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