Bally’s affirms commitment to Chicago amid VGT dispute, announces New York funding

Bally’s Corporation has publicly reaffirmed its commitment to its permanent Chicago casino project, with Chairman Soo Kim stating that approximately 1,000 skilled tradespeople continue working on site daily despite ongoing disputes over video gaming terminal legalization in the city.

In an eight-minute conference call on Monday, Kim addressed what he called “inaccurate reports” suggesting construction had stopped or slowed following the company’s August announcement that it was “resetting the pace of construction” for non-gaming elements. The casino remains on track for an early 2027 opening, Kim asserted, though the company has changed how it is “sequencing certain elements of the development.”

“Investors should view our actions through a straightforward lens: We are protecting the value of significant investments we’re making in Chicago while faithfully executing our contractual obligations,” Kim said during the call, which also featured comments from Wanda Wilson, chair of the Bally’s Chicago board.

VGT Legalization Creates Revenue Concerns

The construction timeline adjustment comes in direct response to Chicago’s legalization of video gaming terminals earlier this year. The city council approved VGTs in its latest budget that took effect in January, overruling Mayor Brandon Johnson who opposed the move.

Speaking before the Chicago City Council’s License Committee last week, Bally’s president and interim CFO George Papanier said the company will “deliver the event centre, 100 rooms of the hotel and the required food and beverage components” in early 2027. However, the company is reevaluating approximately 12% of the project’s other planned amenities, with the hotel plan eventually calling for 500 total rooms.

Papanier warned that widespread VGT proliferation could result in a “30% to 50% impact on top-line revenue” for the casino. The Illinois Gaming Board has already approved 65 VGT license applications in the city this year. VGTs are the highest-grossing gaming vertical in Illinois, generating substantially more revenue and taxes than land-based casinos.

Troubled Project History Continues

The VGT dispute represents the latest challenge in a troubled development process since Bally’s won Chicago’s sole casino license in 2022. Work has been halted previously for debris overflow and unapproved contractors, and the company faced an $800 million funding gap eventually filled through a financing agreement with Gaming and Leisure Properties.

Bally’s has been granted two years’ worth of extensions for the permanent project. State law allows for two-year temporary licenses, but the Illinois Gaming Board approved an extension to three years in 2023, with another year’s worth of extensions granted through language in the state’s omnibus revenue bill passed in June.

The company’s stock jumped 7% in trading on Monday to $9.84, though shares had fallen 30% in the previous month amid Chicago uncertainty and warnings about the company’s ability to continue as a growing concern in its Q2 earnings report. Former CFO Mira Mircheva resigned on 4 September, prompting Papanier to assume the role on an interim basis.

New York Project Moves Forward

Despite Chicago challenges, Bally’s is advancing its $4 billion Bally’s Bronx resort in New York City. The company was one of three NYC license winners last year, alongside Resorts World New York City and Hard Rock’s Metropolitan Park. Bally’s announced new funding for the Bronx project on Monday, though details were not disclosed in the brief conference call.