Bally’s says debts won’t derail plans to open $1.7B Chicago casino by early 2027

Bally’s says its long-awaited Chicago casino is still on track for an early 2027 opening, pushing back on speculation that the project could miss its deadline because of the company’s debt load. The development is a $1.7 billion build in Chicago’s River West area, and Bally’s says it has the funding to finish it on time.

The questions flared after Bally’s included a “going concern” warning in its latest quarterly financial report, pointing to concerns about avoiding a debt default over the next year. Under US accounting rules, companies use that label when there is “substantial doubt” about their ability to keep operating as normal.

Bally’s has reported $4.5 billion in debt, but the company says that won’t stop the Chicago project. Kim Barker, Bally’s Executive Vice President and Chief Legal Counsel, told NBC Chicago that “without question” the funding is in place and the company will complete the resort “on time,” adding that Bally’s remains in a strong position to deliver the integrated casino and resort.

Barker also said projects of this size require heavy spending before any money comes in, and that Bally’s expects a cash inflow once the Chicago development is completed, along with its in-development New York casino. Separately, Bally’s recently disclosed it is in talks about a possible sale of its rights tied to a $1.1 billion development project for the Athletics’ Las Vegas baseball stadium.

Credit pressure is part of the backdrop. Fitch revised Bally’s outlook downward earlier this summer, citing liquidity concerns and “elevated leverage.” Fitch also said Bally’s has repeatedly accessed capital via secured debt and private lending, and noted that financing for the New York development could add liquidity, though the “amount and timing” of that funding is uncertain.

On the ground in Chicago, the project has also become a political fight. A group of 28 city council members accused Bally’s of prioritizing the casino floor while slowing work on the hotel and other non-gaming elements, including retail facilities, event and exhibition spaces, park areas, and a riverside walkway, arguing the slowdown is a “material change” to the council-approved contract. Council members also criticized Bally’s over the city’s decision to approve video gambling terminals, with one alleging the company is blaming VGTs for construction changes while telling investors it is heavily leveraged.

Bally’s originally secured the River West casino deal in 2022, which also allowed it to run a temporary casino at the Medinah Temple in the Near North Side community area. Elsewhere in Illinois, Penn Entertainment’s new Aurora-based Hollywood casino posted $17.4 million in revenue in its first month, while the state’s sports betting volumes fell 21% year-on-year in May.