Bally’s Reaffirms Commitment to Chicago Casino as Mayor Expresses Doubts

A rendering of Bally’s plan for a $1.7 billion casino complex in Chicago. The mayor is questioning whether or not the company can deliver on everything they’re promising. (Image: courtesy of Bally’s)

Chicago Mayor Brandon Johnson cast doubt on whether Bally’s would ever build a permanent casino in his city on Monday, telling the Chicago Sun-Times Editorial Board that the project’s final fate was “still to be determined.”

Bally’s currently runs a temporary casino at Medinah Temple, and has said that it expects to break ground on Bally’s Chicago in River West on July 5. The project is expected to cost $1.7 billion to construct.

Bally’s Chicago Mired in Debt, Construction Issues

Mayor Johnson made his comments in response to a two-part question from architecture critic Lee Bey, who wanted to know if the permanent casino would be built, and if so, would it have all the features that Bally’s has proposed for the facility.

“I wish I could say something definitive today,” Johnson replied, according to the Sun-Times. “I know our team is working with ownership to figure it out like we figured out some of the other things that I’ve inherited. It just has to make absolute sense … I think that one’s still to be determined, to be perfectly frank with you.”

The comments by the mayor are just the latest sign of trouble for Bally’s Chicago. The company has acknowledged that there is an $800 million funding gap between what it has raised and the $1.7 billion that it needs to spend to build the River West casino. The company must spend a minimum of $1.34 billion on the casino under the host city agreement it reached with former Chicago Mayor Lori Lightfoot.

At the same time, investors from K&F Growth Capital have warned that Bally’s debt load could jeopardize the project, especially if the company’s chairman, Soo Kim, succeeds in his takeover effort – a move those same investors are opposing.

Bally’s doesn’t even have a complete plan for its complex yet. The company still has to figure out where it can build a hotel tower, as its original plan was rejected after it was discovered that construction would damage water pipes in the city. 

Temporary Chicago Casino Generates Record Revenue in May 

The temporary casino at Medinah Temple has been open since September 2023. The facility recorded a monthly high of $11.7 million in revenue in May, though that number still falls below what’s needed for the casino to generate as much tax revenue as Chicago lawmakers have budgeted for. 

Despite the mounting issues, Bally’s is still projecting confidence that it will be building its permanent Chicago casino starting this summer. Mark Wong, casino vice president and general manager for Bally’s Chicago, pointed to a vender fair for hundreds of potential partner businesses that the company held Tuesday as a sign that the casino project is still a go.

“I think that’s the testament of our commitment, to move forward and everything’s on track,” Wong told ABC 7 Chicago. 

Mayor Johnson’s office also tried to downplay the significance of his comments, releasing a statement reaffirming its support for Bally’s Chicago.

“The city is pleased that Bally’s has reached its highest revenue numbers so far, and continues to be committed to the permanent casino project,” the statement read.