GLPI completes $250M land acquisition of site for Bally’s Chicago casino

Gaming and Leisure Properties, Inc (GLPI) has announced that it completed its previously announced $250 million acquisition, from Blue Owl Capital, of the land on which Bally’s Corporation permanent Chicago casino will be constructed. The land purchase was one component of GLPI’s broader agreement with Bally’s, which was announced in July.

With the completion of GLPI’s purchase of the Chicago land, the current lease in place with Blue Owl Capital will be assumed by an affiliate of GLPI and amended to reflect the negotiated annual rent of $20 million, representing an initial cash yield of 8.0%. 

GLPI will own substantially all of the real estate and improvements related to the Chicago casino and hotel for a total investment of $1.19 billion resulting in a blended initial cash investment yield of 8.4%. Stabilized rent coverage for the lease is expected to be in the range of 2.0x – 2.4x.

Peter Carlino, Chairman and CEO of GLPI 

Peter Carlino, Chairman and CEO of GLPI commented: “The completion of the Chicago land purchase is a significant milestone toward the development of Bally’s Chicago, which promises to be a must-visit destination casino resort property in the heart of Chicago. 

“Our transactions with Bally’s related to Chicago and our real estate acquisitions at Bally’s Kansas City Casino and Bally’s Shreveport Casino & Hotel will be accretive to our financial results, resulting in an 8.3% blended initial cash yield and conservative rent coverage. We are pleased to be working with the Bally’s team, the host community, and various stakeholders in Chicago to deliver a world-class entertainment center in the nation’s third-largest metropolitan area,” he added.

Meanwhile, Bally’s Chicago temporary facility at the Medinah Temple has reached its first-year milestone, welcoming 1.3 million visitors. Over the past 12 months, the casino has generated over $114 million in adjusted gross receipts, placing it among the top four in Illinois. The casino, which opened in September 2023, is the first of its kind in Chicago and has provided the city with nearly $12.9 million in local tax revenue, according to the Illinois Gaming Board.