Bally's Chicago Selected As Preferred Bidder For City's Casino

Rhea-AI Summary

Bally's Corporation (NYSE: BALY) has been selected by the City of Chicago as the preferred bidder for a $1.7 billion casino resort project. The project promises to deliver significant economic benefits, including an upfront payment of $40 million and annual contributions of $4 million to the city. It is projected to generate over $800 million in stabilized gaming revenue yearly, supporting local pension obligations. Additionally, the project will create 3,000 construction jobs and 3,000 permanent jobs. Bally's commitment includes a Community Investment Program, aiming to empower local investors and businesses.

Positive

• Selected as preferred bidder for a $1.7 billion casino project in Chicago.
• Expected annual stabilized gaming revenue exceeding $800 million.
• Upfront payment of $40 million and annual payments totaling $4 million to Chicago.
• Creation of 6,000 jobs (3,000 construction and 3,000 permanent).
• Community Investment Program empowers local investors.

Negative

• None.

World-Class and Flagship Destination Property to Serve as Major Economic Driver, Showcasing Chicago's Diverse Culture

Bally's to Continue Collaborating with the City Council, the Chicago Federation of Labor and Community Partners

PROVIDENCE, R.I., May 5, 2022 /PRNewswire/ -- Bally's Corporation (NYSE: BALY), a global gaming, hospitality and entertainment company with a portfolio of casinos and resorts and online gaming businesses, today announced that the City of Chicago has selected Bally's Chicago – a $1.7 billion destination casino, entertainment and hotel project – as the preferred bidder in the City's request for proposal (RFP) process to construct and operate a world-class casino resort in downtown Chicago. Bally's worked cooperatively with city officials and community leaders throughout the RFP process to develop a project that embraced Chicago as a global gateway city, incorporating its vibrant cultural scene and highly diversified economy.

As evidenced in the City's evaluation report, Bally's Chicago provides the most economic value to it and its taxpayers, including an upfront payment of $40 million and annual payments to the City totaling $4 million. The project is expected to generate more than $800 million in stabilized gaming revenue on an annual basis – a substantial portion of which will support the City's obligations toward its fire and police union pensions. Additionally, Bally's Chicago will create more than 3,000 annual construction jobs and 3,000 permanent jobs upon completion of the project. Bally's has the financial resources to complete the project and will not require additional equity financing to fulfill its obligations.

Having adopted the theme "The Best of Chicago," the Bally's Chicago proposal is the most community-focused of those submitted. A hallmark of Bally's Chicago is its innovative Community Investment Program, which reserves 25% of the equity in Bally's Chicago with matched financing that will allow hundreds of local and underrepresented communities of investors to own a piece of "the Best of Chicago".

Additionally, with its community-first approach, Bally's Chicago is committed to leveraging the diverse capabilities of its Chicago-based partners, including the Chicago Community Builder's Collective – a minority-led construction management company – to complete the project. In further support of its valued project partners, Bally's Chicago also plans to implement programs to incentivize players and guests to support local businesses, promote career opportunities within Bally's Chicago, and sponsor local, charitable organizations. Bally's Chicago will also open opportunities for additional leading restaurateurs, retailers and designers from Chicago to partner with Bally's Chicago and reflect the best of the Second City.

Further demonstrating Bally's commitment to the Chicago community, it has entered into a neutrality agreement with the Chicago Federation of Labor (CFL), ensuring high-paying roles for Chicago's organized labor groups in operating Bally's Chicago. Bally's, which is already licensed by the Illinois Gaming Board (IGB), will work cooperatively and expeditiously with the IGB to obtain an operating license in Chicago.

Soo Kim, Chairman of Bally's Corporation's Board of Directors, said, "We would like to thank Mayor Lightfoot and her office for conducting a tough, but fair, RFP process, and for selecting Bally's Chicago as the preferred bidder for the City's casino. Our vision is that Bally's Chicago will be of the people, by the people, and for the people of Chicago. Chicago is a unique and vibrant city, deserving of a world-class gaming and entertainment destination that drives the local economy, supports local labor, creates multigenerational wealth for minority investors, and showcases the best of what the City has to offer. We look forward to continuing to work collaboratively with the City Council and various City departments, the CFL, the Illinois Gaming Board, and all of our valued community partners on this exciting endeavor."

About Bally's Chicago

Bally's Chicago is a $1.7 billion destination casino, entertainment and hotel offering that will showcase "The Best of Chicago" arts and culture, food and sports, and curated dining and entertainment experiences. Located on the 30-acre Chicago Tribune Publishing Center at the intersection of Chicago Avenue and Halstead Street, Bally's Chicago will transform this currently underutilized site into a major economic driver for the city.

Among other features and amenities, Bally's Chicago will include 3,400 slots, 170 table games, 10 food and beverage venues, a 500-room hotel tower with rooftop bar, a 3,000 seat / 65,000 square foot entertainment center, a 20,000 square foot exhibition, outdoor music venue, and outdoor green space including an expansive public riverwalk with a water taxi stop.

For more information on Bally's Chicago, visit www.ballys.com/chicago/.

About Bally's Corporation

Bally's Corporation is a global casino-entertainment company with a growing omni-channel presence of Online Sports Betting and iGaming offerings. It currently owns and manages 14 casinos across 10 states, a horse racetrack in Colorado and has access to OSB licenses in 18 states. It also owns Gamesys Group, a leading, global, online gaming operator, Bally Interactive, a first-in-class sports betting platform, Monkey Knife Fight, the fastest growing daily fantasy sports site in North America, SportCaller, a leading, global B2B free-to-play game provider, and Telescope Inc., a leading provider of real-time fan engagement solutions.

With approximately 10,000 employees, Bally's Casino operations include more than 15,800 slot machines, 500 table games and 5,300 hotel rooms. Upon closing the previously announced Tropicana Las Vegas (NV) transaction, as well as completing the construction of a land-based casino near the Nittany Mall in State College, PA, Bally's will own and manage 16 casinos across 11 states. Its shares trade on the New York Stock Exchange under the ticker symbol "BALY".

Investor Contact

Robert Lavan
Chief Financial Officer
401-475-8564
InvestorRelations@ballys.com

Media Contact

Jessica Smith
Jasculca Terman Strategic Communications
708-218-2759
Jessica_Smith@jtpr.com

 

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SOURCE Bally's Corporation

FAQ

What is the value of Bally's Chicago project?

The Bally's Chicago project is valued at $1.7 billion.

What are the expected annual revenues from Bally's Chicago Casino?

Bally's Chicago is projected to generate over $800 million in stabilized gaming revenue annually.

How much will Bally's pay to the City of Chicago?

Bally's will make an upfront payment of $40 million and annual payments of $4 million to the City.

How many jobs will the Bally's Chicago Casino create?

The project will create 3,000 construction jobs and 3,000 permanent jobs.

What is the significance of the Community Investment Program in Bally's Chicago?

The Community Investment Program reserves 25% of equity for local and underrepresented investors.