Bally’s Attempting to Solve $800M Financing Gap for Chicago Casino
Posted on: March 7, 2024, 02:41h.
Last updated on: March 8, 2024, 10:57h.
Appearing before the Nevada Gaming Control Board (NGCB) Wednesday, executives from Bally’s (NYSE: BALY) told the regulators that the company is trying to close a funding gap of $800 million for its permanent Chicago casino.
That means of the project’s estimated $1.1 billion cost , the regional casino operator currently has just $300 million to allocate to it. Bally’s CFO Marcus Glover told the NGCB the gaming company is having conversations with a potential financing partner that wasn’t identified, and that he hopes the matter will be resolved in the coming months.
We’re buying out the (Chicago) Tribune site, which will be the location of the permanent casino,” said Glover at the NGCB meeting. “We have $800 million of the $1.1 billion balance left on the project, and we have a funding gap that we’re trying to solve for $800 million. We feel pretty good about those conversations and that being resolved by hopefully summer of this year.”
The chief financial officer added that Bally’s has a $500 million credit facility in place, and that it’s used $250 million of that sum for land at the Freedom Center, which will be the site of the permanent casino.
Critics of Chicago Casino Plan Sound-Off
Since Bally’s was awarded the lone Chicago casino permit in May 2022 by former Mayor Lori Lightfoot (D-Chicago), there’s been no shortage of critics. They claim the bidding process was flawed, or that the city isn’t the right place for a Las Vegas-style integrated resort.
One of those groups is Bally’s Chicago Watch — an X (formerly Twitter) feed dedicated “to exposing the truth about the Bally’s Chicago casino project.” The group has no ties to Bally’s or the city. In a Xeet posted earlier today, the group said that Glover noting Bally’s is facing a shortfall of $800 million implies the gaming company didn’t have the financial resources to properly execute the Chicago project when it was selected by Lightfoot.
Bally’s Chicago Watch noted that the gaming company previously pledged to allocate $1.7 billion to the Chicago venture. But that figure has been pared to $1.1 billion.
That criticism comes on the heels of reports that emerged last December that there may be multiple investigations, including one that’s federal, into how the city awarded the permit to Bally’s.
Bally’s Has Some Financing Levers
Glover didn’t get into specifics regarding alternative plans for the $800 million needed to drive the Chicago casino across the finish line. But contrary to speculation that’s surfaced in some corners, Bally’s has avenues for raising capital should the aforementioned conversations with a lender fall through.
The gaming company owns a significant portion of the real estate on which its other casinos reside, and has previously shown a willingness to sell some property holdings to raise cash. It’s also possible the operator could decide to sell the operating rights to Tropicana Las Vegas, as the fate of that soon-to-be-demolished casino resort is up in the air because of uncertainty surrounding plans for a Major League Baseball stadium.
Bally’s could also sell corporate debt and/or stock to raise cash. But neither option is appealing because the bonds would carry high interest rates, and selling equity would dilute current investors. Glover didn’t discuss any of the aforementioned ideas with the NGCB.
Related News Articles
Illinois Casino Outlook Steady as New Supply Comes to Market
Full House Casino Off to Fast Start in Illinois
Bally’s Open to Selling Tropicana Las Vegas Lease, Cuts 300 Digital Jobs
Full House Credit Rating Upgrade Unlikely Over Near Term
Most Popular
Sphere Threat Prompts Dolan to End Oak View Agreement
MGM Springfield Casino Evacuated Following Weekend Blaze
This Pizza & Wings Costs $653 at Allegiant VIP Box in Vegas!
Atlantic City Casinos Experience Haunting October as Gaming Win Falls 8.5%
Most Commented
-
VEGAS MYTHS RE-BUSTED: Casinos Pump in Extra Oxygen
November 15, 2024 — 4 Comments— -
VEGAS MYTHS RE-BUSTED: The Final Resting Place of Whiskey Pete
October 25, 2024 — 3 Comments— -
Chukchansi Gold Casino Hit with Protests Against Disenrollment
October 21, 2024 — 3 Comments—
Last Comments ( 17 )
If Bally's can't afford Bally's Chicago, they will likely struggle also with trying to finance their planned casino in State College, PA
The fewer of these facilities we have, the better. The propaganda pieces put together by the casino industry aside, these enterprises and up being a huge "tax" on the surrounding community.
800 million dollars loan for a hotel/casino is a weak proposition at best. It suggest unpredicted expenses!
I hope Ballys's gets out of the casino business. We have enough problems in America. We do not need more gambling. We do not want more of the typical issues associated with gambling. We certainly do not want this in State College, PA. We do not want a casino in State College. Please keep out and stay away. If Bally's did come to State College, they could end up like almost all the other stores that were previously in the Nittany Mall, out of business. I suggest that Bally's tries pursuing a more wholesome business that actually helps people instead of taking advantage of them.
The citizens of Chicago need to take action and speak out against this sleight of hand dealt to us by the leadership of Bally's. Don't just wait for continuing updates from Chicago's local media. These ongoing financial struggles for Bally's Chicago's future aren't going away. It takes proper funding to line up with golden shovels and break ground with cheerful and beaming smiles. That Bally's Chicago casino will bring problems that were never anticipated. Gambling addiction. So, what does gambling addiction look like? How is that officially described anyway? It's not a vague definition that varies from person to person depending on their own individual and specific circumstances. The DSM-5's (Google it) official criteria for diagnosis are exhibiting FOUR of the following NINE criteria during the past 12-month period: -- Need to gamble with increasing amounts to achieve the desired excitement. -- Restless or irritable when trying to cut down or stop gambling. -- Repeated unsuccessful efforts to control, cut back on or stop gambling. -- Frequent thoughts about gambling (such as reliving past gambling or planning future gambling). -- Often gambling when feeling distressed. -- After losing money gambling, often returning to get even. ("chasing" one's losses.) -- Lying to hide gambling activity. -- Risking or losing a close relationship, a job, or a school or a future job opportunity because of gambling. -- Relying on others to help with money problems caused by gambling. That's it. No need to guess about the official criteria anymore. No need to wonder about what to look for. Friends and family members should now know exactly what to look for. Start speaking out before Bally's can break out those golden shovels and smile for the evening news coverage.
Here's what Bally's deserves to hear right now: Good luck and best wishes!
On 9 March 2024, my brother and I invited Bally's of Chicago. Bally's advertisement states open 24 hours. When we arrived, Bally's was closed. Was told to come back in 90 minutes. So we drove to Gary, Indiana and visited the Hard Rock Casino. Only took us about 40 minutes drive.
Bally's already forgot about the Chicago investigations going on about how they were selected by the City of Chicago leadership. Did the media also forget about that?
Right now the value of Bally's stock struggles to break through the $12.00 share valuation "glass ceiling." Just twelve dollars. Really? Take a look at their downhill ski slope stock chart since January 1st. Not exactly a Happy New Year so far.
An important factor in generating that forecasted future casino revenue will include retaining return customers that enjoy both the brand-new Bally's hotel facilities as well as that fabulous brand-new casino. The hotel will get only one chance to make that first impression with each new customer. Ask Bally's current hotel guests if they are genuinely happy with their most recent visits to the many Bally's casino/hotel properties nationwide. Read the most recent online reviews for those Bally's casino hotel properties posted in just the past six months. Now ask those same casino patrons how soon they plan to return. Are they telling their friends "That was sure a great time at Bally's last weekend! I enjoyed every minute. Let's go back there as soon as we can!" You won't really be sure if you don't take the time to actually look at those very recent reviews and get that current pulse check of what is going on right now. Maybe repeating the same actions over and over again while expecting different results will not contribute to the skyrocketing casino revenue that is being hoped for in Chicago. Those customer reviews spell it out right now in real time.
Bally's AC is a joke, the worst in AC
I hope they get bought out. THE Managment is terrible. Always worried about losing money. Lowering table max limits all the time. Taking away bonuses. Lowering the max on bonuses. If they can't give out money why have a casino. The VP never has good ideas. He's an investor which is why they made him VP. They post team member appreciations on social media they never appreciate their employees they always look sad and depressed. Please don't fund them.
How many OTHER financial "irons in the fire" are there right now for brand new Bally's casino hotels are currently being planned? One is the brand new Bally's casino hotel at the former Tropicana casino location in Las Vegas. Another is the planned $120 million land-based Bally's casino near the Nittany Mall in State College, PA. At least construction there will be easier since that casino location is inside a vacant former Macy's store near (actually in) that shopping mall. Some brilliant business plans underway, right?
In September 2022, Forbes published a story titled "Mr. Vice Guy" detailing how Bally's chairman Soo Kim built his financial empire in large part by ruthlessly shaking down his business partners -- and Bally's then chose to promote this story on its own social media feeds. Anyone considering a partnership with Bally's would do well to read this article to find out what Bally's wants the world to know about who they are and what they do!
Stick a fork in Bally's. They're done.