Bally’s secures $940 million financing from GLP for Chicago casino, unveils new design

Bally’s Corporation has secured $940 million in financing from Pennsylvania-based real estate investment trust Gaming & Leisure Properties to develop Bally's Chicago, a $1.7 billion casino complex on the 30-acre Freedom Center printing plant site in River West, Chicago.

Alongside the financing, Bally’s has unveiled a redesigned site plan, shifting the planned 500-room hotel tower to the southern end of the site to avoid city water infrastructure, pending approval from the city's planning department.

This financing package and revised site plan aim to address concerns from analysts, investors, and city officials about Bally’s financial capacity to complete the project. In 2022, Bally’s, based in Rhode Island, won the competition to build Chicago’s first casino, which will include an exhibition hall, a 500-room hotel, a 3,000-seat theater, 10 restaurants, and 4,000 gaming positions overlooking the river.

“We’ve been working hard in the background to restore the full hotel tower for Bally’s Chicago Casino and absolutely intend to meet the September 2026 opening date as planned,” said George Papanier, President of Bally’s Corporation. “We are also happy to announce that Gaming and Leisure Properties has agreed to finance this entire development in a single phase to ultimately deliver a better project in a more efficient manner.”

On Friday, July 5, Bally’s took possession of the former Tribune Publishing site, located at 777 W. Chicago Avenue. This week, Brandenburg Industrial Service Company, the project’s demolition contractor, began preparing the site for demolition.

“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,” added George Papanier.

A temporary facility at Medinah Temple was launched in September, with plans to open the permanent casino by September 2026. However, the project faced challenges earlier this year. In January, Bally’s announced the need to relocate the hotel tower due to potential damage to municipal water infrastructure.

In November 2022, Bally’s acquired the Freedom Center site for $200 million and executed a sale-leaseback with Oak Street Real Estate Capital, raising up to $500 million to help build the casino. Concerns about financing the project arose in February when Bally’s revealed an $800 million funding gap. Analysts suggested that a tight credit market and Bally’s debt-heavy balance sheet might delay or downsize the project.

The new site plan by HKS shifts to a single-phase development, placing the 500-room hotel tower to the south of the entertainment complex, away from infrastructure issues. Gaming & Leisure Properties, with a portfolio of 65 locations across 20 states, will raise over $2 billion through transactions with Bally’s, including sale-leasebacks on other assets.

Chicago Mayor Brandon Johnson also expressed doubts, stating it was uncertain whether the full $1.7 billion complex would be built as planned. The financing announcement marks a significant step toward achieving this goal. Bally’s expects the permanent casino to play a crucial role in meeting the financial goals of both the city and the company.

Despite a record-breaking May, Bally’s Chicago saw an 11% revenue drop in June, generating $10.4 million in adjusted gross receipts, according to the Illinois Gaming Board. However, admissions rose by 1% to nearly 120,000 visitors, ranking second behind Rivers Casino Des Plaines. Bally’s celebrated its millionth visitor at the temporary facility last month.

The permanent site plan, designed by HKS, includes a 500-room, 34-story hotel tower, a 3,000-seat theater, six restaurants, cafes, a food hall, and a 2-acre public park. The casino will offer 3,300 slots, 173 table games, and VIP gaming areas, connected to the riverbank by an extension of the riverwalk.

The hotel tower will include a large pool spa, fitness center and sun deck, as well as a rooftop restaurant bar. The development is expected to generate approximately 3,000 construction jobs and 3,000 permanent casino jobs.

The design by HKS aims to add to Chicago’s architectural history, drawing inspiration from the Chicago River. The Chicago Community Builders Collective, a minority-led construction partnership, will implement the improved site plan.