Last updated: April 05, 2024
Chicago’s support for Bally’s casino project remains steadfast despite financial challenges and a potential takeover offer. With concerns over job creation and revenue generation, policymakers monitor developments closely while urging Bally’s to honor commitments for a permanent casino amid financial uncertainties and investor disagreements.
In a statement addressed by Mayor Johnson’s office to Crain’s Chicago Business, there was a request to Bally’s to fulfil its agreement by creating a permanent casino hotel at the former Tribune printing plant situated in the River West area of Chicago. Over time, Bally’s runs an interim venue situated at Medinah Temple in River North.
The Chicago project has been surrounded, recently, by new revelations that catch the eyes of the Nevada Gaming Control Board. These instigations show that the executives of Bally’s have been trying to fill the funding gap of approximately $800 million. But, this one will have to be done with caution, seeing as the company recently got credit downgrades from Bally’s.
However, like Indian Bingo and other projects, scheduling for this project has also been impacted. Still, Bally’s is reassured that the construction work will start this year and the casino will officially open in 2026. A contract following this procedure of the casino of Bally’s picking the mayor of Chicago for the first bid as the only casino licensee was signed by Lori Lightfoot, who was the mayor of Chicago during that time.
Chicago residents and policymakers believe that a permanent casino operated by Bally’s is the solution because of the stability of the jobs and revenues. Nevertheless, a recent acquisition proposal from Standard General in which Soo Kim, who is also Bally’s character director, is charged could do the same thing.
The standard general has pledged to finish the Chicago casino only if it acquires Bally’s; however, some investors and local citizens are supposed to fear extra risks if the casino becomes private.
In a letter addressed to the Bally Board that K&F wrote, they recommend and advise negotiating with another public company from Chicago to make up for the potential risks and state that one proposition is to dispose of Tropicana Las Vegas’ operating rights for the sake of fundraising and not pursue the New York City gaming license. One of the key features of Mayor Johnson’s office is the office’s non-involvement in investor disputes but anticipation of the project development is expressed along with the monitoring process by the news company Crain’s.
Bally’s has not announced any active search for a partner in Chicago, but such a move could be beneficial in reducing financial risk amid investor concerns about the operator’s credit standing.
Analysts speculate that Bally’s is likely to reject Standard General’s takeover offer and proceed with its ambitious Chicago project, which is considered the company’s most costly endeavor to date.
However, if Bally’s does not pursue this course of action, Chicago still has alternative options, as both Hard Rock International and locally-based Rush Street had vied for the same license awarded to Bally’s. Nevertheless, the preferred outcome for the city remains Bally’s commitment to fulfilling its obligations.
Susan is a verified gambling support specialist who has helped thousands of problem gamblers get back on their feet through therapy and financial counseling. She’s also worked as a cage manager in four Las Vegas casinos and spent two years in Macau in her 30s, where she became extremely savvy at Sic Bo and other Asian table games. Her knowledge and expertise have and continue to play a priceless part in how we structure our content, particularly when it comes to game guides and casino reviews.
