Bally's Announces Refreshed Site Plan that Restores 500-room Hotel Tower Plan into Single-Phase Project

Rhea-AI Summary

Bally's announced a revised site plan for Bally's Chicago Casino. They will now combine the 500-room, 34-story hotel tower into a single-phase construction project, set to open in September 2026. The project, pending approval by the Chicago Department of Planning & Development, includes a large pool, spa, fitness center, sun deck, and rooftop restaurant bar. Bally’s secured a $940 million construction funding facility from Gaming and Leisure Properties (GLPI) for the project, with GLPI expected to fund a total of $2.07 billion to Bally's.

The site, formerly Tribune Publishing, will soon commence demolition by Brandenburg Industrial Service Company. The development will feature a 3,000-seat theater, six restaurants, cafes, a food hall, and a 2-acre public park, with approximately 3,300 slots and 173 table games. The project is expected to create 3,000 construction jobs and 3,000 casino jobs. Renderings were prepared by HKS, the global design firm.

Positive

• Bally's secured a $940 million construction funding facility from GLPI.
• The combined single-phase project accelerates development efficiency.
• The development is expected to create 3,000 construction jobs and 3,000 casino jobs.
• Bally's aims to meet the September 2026 opening date as planned, enhancing investor confidence.

Negative

• Project approval by the Chicago Department of Planning & Development is still pending.

Insights

Financial Analyst

The announcement of the refreshed site plan for Bally's Chicago Casino and the securing of a $940 million construction funding facility introduces significant financial aspects worth noting. Financing is a key element here, as the commitment from Gaming and Leisure Properties, Inc. (GLPI) to fund the entire project in a single phase minimizes the financial risks associated with phased developments. This approach can substantially reduce costs and accelerate returns on investment.

Moreover, the agreement to finance a combined $2.07 billion underscores the magnitude of this project. This can be perceived positively by investors, as it implies a strong belief in the project's profitability and feasibility from an established financing entity. However, it should be noted that large projects also carry substantial execution risks, including potential delays and cost overruns, which could impact Bally's financial health if not managed properly. Investors should monitor the progress closely and see if Bally's can adhere to the stated timelines and budget.

Additionally, Bally's is expected to create 3,000 construction jobs and 3,000 casino jobs, indicating a potentially positive impact on the local economy, which can also enhance the company's public image and community relations.

Market Research Analyst

From a market perspective, Bally's decision to include a 500-room hotel tower in the initial phase of the project is strategic. Integrating the hotel early on not only helps in drawing more foot traffic but also enhances the overall marketability of the casino. The inclusion of facilities like a large pool spa, fitness center and rooftop restaurant further contributes to an extensive guest experience, which can be a key differentiator in the competitive casino market.

The project's location at the former Tribune Publishing site along the Chicago River is another critical factor. The urban riverfront site can attract both tourists and locals, providing a wide customer base. It's important to note that integrating with the riverbank and extending the riverwalk improves accessibility, which is likely to boost visitor numbers. However, the success of such large-scale projects often depends on regulatory approvals and urban planning permissions. Investors should keep an eye on the Chicago Department of Planning & Development's decisions in the coming months.

Real Estate Expert

Real estate aspects of this development are notable, particularly the transformation of a 30-acre former Tribune Publishing site into a modern entertainment hub. The planned 34-story hotel and casino will add to Chicago's iconic skyline, potentially increasing the value of the surrounding real estate. The strategic alliance with GLPI, a seasoned player in gaming and entertainment construction, also ensures that the project benefits from experienced oversight and reduced development risks.

Additionally, the project's emphasis on creating inclusive, dynamic spaces such as a 2-acre public park and a food hall aligns with current urban development trends focusing on mixed-use environments. These elements not only enhance the area's appeal but can also drive higher long-term appreciation in property values. Real estate investors might find this project particularly interesting due to these secondary benefits beyond the immediate revenue generation from the casino and hotel operations.

Bally’s Beginning Site Prep for Demolition for Fall 2026 Opening

CHICAGO--(BUSINESS WIRE)-- Bally’s Corporation (NYSE: BALY or “Bally’s”) today announced a refreshed Bally’s Chicago Casino permanent site plan that prominently features a planned 500-room, 34-story hotel tower into a single-phase construction project at the 30-acre former Tribune Publishing site, pending approval of the Chicago Department of Planning & Development.

In new renderings released today, the future Bally’s Chicago Casino will feature its hotel tower on the southern end of the casino development nearest Ohio Street along the Chicago River. The hotel tower will include a large pool spa, fitness center and sun deck, as well as a rooftop restaurant bar to enjoy the Chicago skyline. Earlier this year, the hotel tower was moved due to unforeseen underground infrastructure and an adjusted design for a two-phase hotel was approved.

“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.”

Bally’s and Gaming and Leisure Properties, Inc. (NASDAQ: GLPI or “GLPI”) today entered into a binding term sheet for $940 million construction funding facility for the Chicago project, along with other financing transactions, that together GLPI expects to fund $2.07 billion to Bally’s. GLPI and Bally’s have agreed to a strategic alliance on the Chicago casino and hotel tower construction development. GLPI’s principals have over three decades of construction development in the gaming and entertainment industry. See ballys.com/news for additional details.

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.

Bally’s Chicago Casino development will harness the beauty of the urban Chicago riverfront site to create inclusive, dynamic spaces, including plans for the 500-room hotel tower, 3,000-seat theater, six restaurants, cafes and a food hall, and a 2-acre public park. The casino will offer space for approximately 3,300 slots, 173 table games and VIP gaming areas. The lower riverbank will be connected to the property with an approximately 2,000-foot-long extension of the riverwalk extending south from W. Chicago Avenue. The development will generate approximately 3,000 construction jobs and 3,000 casino jobs when Bally’s Chicago permanent becomes operational. Renderings of the new design are available at http://ballyschicago.com/renderings.

“The improved site plan for Bally’s Chicago delivers all 500 hotel rooms upfront as part of a single-phase development plan, protects all essential infrastructure, and elevates the grandeur of our much-anticipated permanent casino development,” said Christopher Jewett, Senior Vice President, Corporate Development of Bally’s Corporation. “We look forward to working with city officials to secure approval of our revised site plan.”

The renderings of the improved site plan were prepared by HKS, a global design firm with an office in Chicago that provides award-winning hospitality and entertainment design services. HKS designed the Grand Hyatt Nashville, MGM National Harbor gaming resort in Maryland, The Palazzo in Las Vegas, and The Venetian Macao. The design for Bally’s Chicago will add to the rich architectural history of Chicago with an iconic addition to the riverfront skyline, pulling inspiration from the Chicago River for the form-pulling activity from the river up the façade creating a dynamic, iconic building incorporating undulations of the skin.

"We are proud to be part of the new site plan for Bally’s Chicago Casino, which highlights a commitment to innovative and iconic design that not only preserves essential infrastructure but also elevates the architectural magnificence of Chicago’s skyline," said Jess Corrigan, Partner and Regional Practice Director of Commercial Mixed-Use at HKS. "We look forward to collaborating with Bally’s and city officials to bring this ambitious project to life."

The Chicago Community Builders Collective (“CCBC”), a minority-led construction partnership, is poised to implement the improved site plan and bring the Bally’s Chicago Casino vision to life.

"We at the Chicago Community Builders Collective are thrilled about the future of Bally's Chicago Casino and are excited to see this project come to fruition," said Jimmy Akintonde, CCBC member and President & CEO of Ujamaa Construction. "As the general contractor, we are proud to be at the forefront of this significant development that promises to bring jobs, economic growth, and vibrant entertainment to our city. We look forward to this project's positive impact on Chicago and are committed to ensuring its success."

About Bally's Corporation

Bally's Corporation is a global casino-entertainment company with a growing omni-channel presence. It currently owns and manages 15 casinos across 10 states, a golf course in New York, a horse racetrack in Colorado, and has access to OSB licenses in 18 states. It also owns Bally's Interactive International, formerly Gamesys Group, a leading, global, online gaming operator, Bally Bet, a first-in-class sports betting platform, and Bally Casino, a growing iCasino platform.

With 10,600 employees, the Company's casino operations include approximately 15,300 slot machines, 580 table games and 3,800 hotel rooms. Upon completing the construction of a permanent casino facility in Chicago, IL, and a land-based casino near the Nittany Mall in State College, PA, Bally's will own and/or manage 16 casinos across 11 states. Bally’s also has rights to developable land in Las Vegas post the closure of the Tropicana. Its shares trade on the New York Stock Exchange under the ticker symbol "BALY".

View source version on businesswire.com: https://www.businesswire.com/news/home/20240711868387/en/

Media:

Emily MacMillan

em@respublicagroup.com

312-755-3547

Diane Spiers

VP of Marketing & PR

dspiers@ballys.com | 609-377-4706

Source: Bally’s Corporation

FAQ

What changes has Bally's made to the Chicago Casino project?

Bally's has revised the Chicago Casino project to include a 500-room, 34-story hotel tower into a single-phase construction plan.

When is Bally's Chicago Casino scheduled to open?

Bally's Chicago Casino is scheduled to open in September 2026.

How much funding has Bally's secured for the Chicago project?

Bally's secured a $940 million construction funding facility from Gaming and Leisure Properties (GLPI), with a total expected funding of $2.07 billion.

What amenities will Bally's Chicago Casino include?

The casino will feature 3,300 slots, 173 table games, a 3,000-seat theater, six restaurants, cafes, a food hall, and a 2-acre public park.

Who prepared the new renderings for Bally's Chicago Casino?

The new renderings were prepared by HKS, a global design firm.