Bally’s Corporation is navigating a turbulent summer, hit with pressures in Chicago, Las Vegas, and a looming New York project. In Chicago, Bally’s secured an extension for its temporary license on June 1, necessary to continue work on its $1.8 billion casino. But the company is now facing a fresh hurdle with the lift on the city’s ban on Video Gaming Terminals (VGTs). Still, the City Council’s recent budget anticipates around $6.8 million from VGT licensing revenue, with nearly 300 venues having already applied for licenses.
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Bally’s Proposes Alternatives Amid VGT Threat
Bally’s is pushing back against VGTs, warning of a potential $75 million hit to its annual revenue and the possible loss of 1,000 jobs. The company, having inked a community agreement for the lone Chicago license, is concerned the VGT legalization may invalidate that agreement. In an effort to counter the VGT revenue, Bally’s proposed installing slot lounges at Chicago’s airports, O’Hare and Midway. Christopher Jewett, a senior vice president at Bally’s, mentioned that a single slot lounge could generate $5 million annually in gaming and admission taxes for the city, addressing the budget shortfall. And meanwhile, the Illinois Gaming Board reported that, so far this year, Illinois casinos have brought in $889.5 million in gross receipts. VGTs, by contrast, have garnered $1.4 billion. That’s large competition for Bally’s as they attempt to protect their stake in Chicago’s gambling scene.
Troubles Mount in Las Vegas
In Las Vegas, Bally’s $1.2 billion mixed-use development on the Strip faces uncertainty due to the construction progress of the adjacent MLB stadium for the Athletics, expected to open in 2028. The timing of Bally’s development is a concern, with speculation that additional infrastructure might be built by the MLB team if Bally’s can’t meet its deadlines. And this could potentially inflate Bally’s costs by $100 million. Steve Hill of the Las Vegas Convention and Visitors Authority has expressed skepticism about Bally’s financing ability, urging a detailed plan by August. Bally’s CFO, Mira Mircheva, and attorney Dan Reaser have clarified that the 2028 completion requirement applies specifically to the stadium and related infrastructure, not the casino or hotel components.
Bally’s Bronx Ambitions
Amidst these hurdles, Bally’s looks toward its New York venture. Last year, it secured a license to develop a sprawling $4 billion resort in the Bronx. Construction is projected to start by late summer or early fall, contingent on the license awarded in December. Bally’s has been actively expanding, acquiring companies like Intralot and Evoke, while taking large moves in New York, Chicago, and Las Vegas. This growth comes despite the company’s heavy financial load, with over $4.3 billion in debt. Bally’s stock saw a 50% increase over the past year, although recent months have shown a 15% dip, highlighting investor caution.
Outlook and Next Steps
The coming months will be critical for Bally’s as they tackle challenges in multiple cities. The Chicago City Council remains divided on the VGT issue, leaving Bally’s financial forecasts uncertain. In Las Vegas, Bally’s must submit a development plan to the Las Vegas Convention and Visitors Authority by August. All eyes are on whether Bally’s can adhere to its ambitious New York schedule as they continue their U.S. expansion drive.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
