Bally’s Corporation Announces $2.07 Billion Chicago Casino Project with GLPI

Chicago, a new chapter in the city’s vibrant history is about to unfold. Bally’s Corporation, in partnership with Gaming and Leisure Properties Inc (GLPI), has announced an ambitious project that promises to transform a significant part of the cityscape. The vision: a sprawling casino complex, complete with a 500-room, 34-storey hotel tower, situated along the scenic Chicago River. This venture is set to redefine entertainment and hospitality in the Windy City.

A Vision Takes Shape

The journey began when Bally’s acquired a 30-acre site, previously the home of Tribune Publishing. This acquisition was a strategic move, laying the foundation for a landmark development. The site, now a canvas for Bally’s grand design, is being prepared for demolition by Brandenburg Industrial Service Company. As the old structures make way for the new, anticipation builds for what is to come.

The new renderings of the casino complex are nothing short of spectacular. They depict a gleaming casino building paired with a towering hotel, a beacon of luxury and excitement. This isn’t just a place to gamble; it’s a destination. The hotel will boast 500 rooms, offering stunning views of the city and river. Amenities will include a pool, spa, fitness center, sun deck, and a rooftop restaurant bar. The casino itself will be a haven for gaming enthusiasts, featuring 3,300 slot machines, 173 table games, and exclusive VIP gaming areas.

Strategic Adjustments and Community Considerations

Earlier this year, Bally’s made a crucial decision to relocate the hotel tower to the south of the casino. This adjustment was necessary to protect the city’s water infrastructure, demonstrating Bally’s dedication to working harmoniously within the urban environment. The plans, while impressive, are still subject to approval from the Chicago Department of Planning & Development. However, confidence runs high that the project will receive the green light, paving the way for construction to begin in earnest.

The economic implications of this development are profound. Bally’s estimates that the project will generate approximately 3,000 construction jobs, followed by an equal number of permanent positions once the casino opens. This influx of employment opportunities is a boon for the local economy, promising to revitalize the community and countless families.

The project’s timeline is ambitious yet feasible. Bally’s has set its sights on opening the casino by September 2026, a goal that has remained steadfast since the City Council of Chicago selected Bally’s for the project over two years ago. In May 2022, Bally’s secured the downtown Chicago project, outpacing competitors such as Rush Street Gaming and Hard Rock. The selection process was rigorous, but Bally’s comprehensive vision and commitment to the city’s development stood out.

Financing and Future Prospects

Financially, the project is bolstered by a robust partnership with GLPI. Bally’s has secured a $940 million binding term sheet agreement with GLPI, which is part of the overall $2.07 billion funding required. This initial investment will be financed through an amended master lease agreement, with an annual rent of $20 million over an initial term of 15 years, and options for renewal.

Moreover, GLPI’s involvement extends beyond this single project. The agreement includes plans for GLPI to acquire and leaseback properties in Kansas City, Missouri, and Shreveport, Louisiana, amounting to $395 million. Bally’s also intends to sell and lease back its Twin River Lincoln property in Rhode Island by the end of 2026, a move expected to raise approximately $735 million. This strategic financial maneuvering underscores GLPI’s confidence in Bally’s vision and the potential of the Chicago casino project.

As Bally’s prepares to break ground, the excitement is palpable. George Papanier, Bally’s president, expressed his confidence in the project’s timely completion, citing the secured financing, a superior site plan, and the impending start of demolition. Christopher Jewett, senior vice-president for corporate development at Bally’s, highlighted the improved site plan, which delivers all 500 hotel rooms upfront and safeguards essential infrastructure.

The Bally’s Chicago Casino and Hotel is more than just a new development; it’s a symbol of progress and ambition. As the city watches this grand project rise along the Chicago River, it marks the beginning of a new era in entertainment and hospitality, promising to become a cornerstone of Chicago’s vibrant cultural and economic landscape.

Source:

”Bally’s maps out new Chicago Casino plans, GLPI to help fund project”, igamingbusiness.com, July 12, 2024.