Bally's Navigates Significant Headwinds on Chicago and Las Vegas Developments as New York Plans Emerge

Bally's Corporation is facing considerable pressure on two major integrated resort projects, with a third substantial development in New York City poised to begin. The challenges include new competitive threats in Chicago and financing concerns in Las Vegas, all while preparing for its multi-billion-dollar project in the Bronx.

Chicago Project Faces VGT Competition

In Chicago, Bally's secured a critical extension for its temporary casino license before the state legislature adjourned on June 1, supporting the ongoing construction of its $1.8 billion permanent casino. However, a new obstacle has emerged with the legalization of video gaming terminals (VGTs) within city limits. This decision came after Chicago Mayor Brandon Johnson's budget was overridden by an alternative city council proposal, which also allocated $6.8 million in VGT licensing revenue. Roughly 300 venues have already applied to operate VGTs.

The debate over VGTs remains contentious among city officials. During a recent city council committee meeting that concluded without resolution, Bally's proposed installing slot lounges at O'Hare and Midway airports. The operator believes these lounges could generate enough revenue to offset the $6.8 million expected from VGT licensing. Christopher Jewett, Bally's Senior Vice President of Corporate Development, stated, "We believe one lounge can generate approximately $5 million in actual gaming and admission taxes, which go directly to the city."

Bally's has cautioned that if the VGT ban is not reinstated, the financial implications could be severe, potentially reducing its annual revenue by nearly $75 million and eliminating around 1,000 jobs across its temporary and permanent casino operations. The company also indicated that the introduction of VGTs could void several stipulations in its host community agreement, including a $4 million annual payment to the city, possibly leading to litigation. Jewett expressed the company's position, asserting that, "Had we known that... this body would reverse course and allow an alternative form of gambling that breaches the agreement, we would never agree to the numerous commitments."

Las Vegas Development Faces Financing Scrutiny

Meanwhile, Bally's $1.2 billion mixed-use development on the Las Vegas Strip is also under scrutiny. The project is situated next to the future MLB stadium for the Athletics, which is slated for a spring 2028 opening. Questions have arisen regarding Bally's ability to finance and complete its portion of the development in a timely manner. Reports suggest the Athletics might need to develop some of its own infrastructure if Bally's pace is too slow, potentially adding $100 million to stadium construction costs.

Steve Hill, President and CEO of the Las Vegas Convention and Visitors Authority (LVCVA), conveyed to The Athletic that Bally's lacks sufficient financing for the project and that the LVCVA has requested a detailed future plan by August. Bally's confirmed that it is "unlikely" the casino-hotel component will be ready by 2028. During a recent meeting with the Nevada Gaming Commission, Bally's CFO Mira Mircheva and attorney Dan Reaser clarified that the April 2028 deadline applies exclusively to the stadium's opening. Reaser stated, "To make the record clear, the April deadline of 2028 is for the stadium to open and for the baseball season to proceed." He added that only the retail district, parking garage, utilities, and plaza are expected to be completed by that time, with the hotel and casino towers slated for a later phase.

New York City Project Looms

As these challenges persist, an even larger undertaking awaits: Bally's secured a coveted downstate New York casino license last winter for an integrated resort at a golf course it owns in the Bronx. This ambitious project carries an estimated price tag of $4 billion, roughly equivalent to the combined costs of its Chicago and Las Vegas developments. Construction is anticipated to commence approximately eight to nine months after licensure, placing the start date around August or September. Bally's expressed "every motivation to get started as quickly as this fall on our NYC project" earlier this year.

Bally's has been notably active in corporate transactions and capital allocation in recent years, including acquisitions like Intralot and Evoke, and a majority stake in Star Entertainment since 2025. Financially, the company reported $559 million in cash for Q1, against over $4.3 billion in long-term net debt and $2.2 billion in lease liabilities. While its stock saw a 50% increase over the past year, momentum has recently slowed, with shares decreasing by 15% in the last six months.