The issues surrounding Chicago’s first casino within the city apparently continue. The bidding process has seen multiple investigations, the plan for the casino was altered because of key city water lines located under the planned site, and the Bally’s temporary casino underperformed during the first few months of operation.
Now Bally’s is reportedly seeking $800 million to begin construction on the $1.1 billion project, just as the Chicago Tribune’s Freedom Center printing plant is set to be demolished this summer to make way for the casino. However, company officials believe they are making progress in finding a partner.
“We have a funding gap that we’re solving for of about $800 million, and feel pretty good about those conversations and that being resolved by hopefully summer of this year,” Bally’s Executive Vice President and Chief Financial Officer Marcus Glover recently told the Nevada Gaming Control Board.
Funding Issues Cause Concern
The planned casino was originally to include 3,400 slot machines, 170 table games, a 500-room hotel, a 3,000-seat entertainment venue, six restaurants, a food court, and more. However, the company scaled back the hotel plans in January after the water lines were discovered.
The 35-story hotel has now been removed and the project will instead see a 100-room hotel inside a building already planned for the site. A 400-room tower built over that location is now scheduled for construction within five years
However, the financing issues may be of concern to city officials. Rising interest rates have been a problem for developers around the country and may be hampering the efforts in Chicago. There are concerns that the funding issues could ultimately delay the project.
“While Glover said during the meeting that Bally’s still projects the 1 million-square-foot project will be open by the third quarter of 2026, nailing down a construction loan remains a formidable hurdle,” Crain’s Business Chicago reported.
The funding issues come after some critics of the original bidding process believed Bally’s didn’t have the funds to complete the project. In December, city alderman Brian Hopkins confirmed that local and federal officials are investigating the process after complaints from other bidders for the casino license.
Some of the allegations included discrepancies in fees charged to different bidders and conflicts of interest among city consultants evaluating financial prospects. Some also argue that the bidding process wasn’t fully transparent. Representatives for former Mayor Lori Lightfoot(D) have denied those allegations.
Revenue Up at Temporary Casino
Despite some of the casino project’s troubles, the news has been looking up for the temporary casino, which is located at Medinah Temple in the River North area. While casino tax revenue greatly missed initial city projections, the property’s revenue has trended up in recent months.
In January, gross gaming revenue topped $10 million. That’s an increase of $6.8 million from the casino’s first month of operation in September, and a 9.1% jump from December.
This is a major change from reports in January that detailed how the temporary casino’s tax revenue collection missed original city estimates by a wide margin. The city received $3.1 million in tax revenue from $30 million in gross gaming revenue. Lightfoot’s administration expected $12.8 million, but instead experienced a $9.8 million shortfall.
The latest revenue numbers now show that gaming at the property is picking up and is a bright spot after the casino plan has seen so much negative news. Despite the cold weather months, the Bally’s property was the only casino in the state to show month-over-month growth in January.
Admissions to the property also reached 88,000, the second-highest in the state. The property has implemented some additions and changes meant to bring in more players and management believes those moves have paid off.
“Bally’s is pleased to announce the results of our phased opening of our Chicago property,” casino vice president and general manager Mark Wong said. “January was our highest gaming revenue month to date, and we continue to see strong visitor counts.
“More customers are taking advantage of our free parking and free shuttle service, which continues to grow in popularity. We look forward to implementing valet parking, introducing more shuttle and bus routes, and creating new VIP areas to meet customer demands.”
In December, the casino also changed operating hours to 24 hours a day, seven days a week. That appears to have also helped from a revenue standpoint as well. The property has seen its staffing numbers also moving upward, now employing more than 600 with 63% of those Chicago residents.
Whether all those employees will be working at a new permanent casino in 2026 remains to be seen, but Bally’s leadership are hoping to secure funding for the project soon to make that happen.
