Bally’s Chicago, riding high on record-breaking admissions and gross receipts at Medinah Temple, Illinois, in May, is gearing up to break ground on a monumental $1.7 billion permanent casino on July 5, with a slated opening in September 2026. However, amidst the anticipation, clouds of uncertainty loom over the project’s future.
Mayor’s apprehensions:
Mayor Brandon Johnson’s?reservations add a layer of uncertainty. With the company grappling with an?$800 million funding gap?for construction and a potential takeover offer from its major shareholder, the mayor’s cautious stance reflects concerns about the project’s viability. During a recent dialogue with the Chicago Sun-Times Editorial Board, Mayor Johnson refrained from providing a definitive endorsement, citing the complexities surrounding the project’s?financing?and?execution.
Bally’s faces formidable financial challenges in securing the necessary $800 million for the construction of its permanent casino in?River West. Investors, including?K&F Growth Capital, warn of the project’s vulnerability in the face of a potential buyout bid from the corporation’s chairman,?Soo Kim. The company’s credit rating has been downgraded by leading Wall Street ratings agencies, citing concerns about development risks as it endeavors to kickstart construction on its River West casino.
Optimism amidst adversity:
Despite these hurdles,?Marcus Glover, Bally’s CFO, remains?cautiously optimistic, as NBC Chicago reports. With a commitment to invest?$1.7 billion?in the project and contractual obligations amounting to?$1.34 billion, the company is forging ahead. However, challenges persist, notably the identification of a suitable location for the hotel tower, following initial setbacks that posed risks to city infrastructure.
In the face of doubts, a spokesperson for Bally’s offers assurances that plans for the permanent casino remain on track. The company is set to assume ownership of the River West property on July 5, signaling a significant milestone in the project’s timeline. With a tentative opening scheduled for?September 2026, Bally’s remains committed to realizing its ambitious vision for the Chicago casino landscape.
Local aldermen, including?Walter Burnett?and?Brendan Reilly, offer their perspectives on the project’s trajectory. While Ald. Burnett underscores Bally’s commitment to the project and dismisses the mayor’s concerns, Ald. Reilly highlights the financial hurdles faced by the company. Meanwhile, community?engagement efforts?continue, with Bally’s organizing diversity vendor fairs to foster collaboration with minority-owned and women-owned businesses. A public meeting on the demolition of the casino site further underscores the company’s commitment to transparency and community involvement in the project’s development.
As uncertainties continue to overshadow Bally’s ambitious casino project, stakeholders remain vigilant, monitoring developments closely. With hopes for a resolution that ensures the realization of this transformative endeavor for the city of Chicago, the journey towards the completion of Bally’s $1.7 billion casino remains a narrative of perseverance, challenges, and collective aspirations.