Bally's Corp. has locked in $940M in financing for a sizable casino and hotel complex along the Chicago River as part of a larger capital infusion from a gaming real estate firm.
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The casino operator signed an agreement with Gaming and Leisure Properties, a real estate investment trust, for construction funding, Bally's announced in a press release Friday.
The REIT will own the property and lease it back to Bally's as the casino operator, according to the release. Bally's has agreed to pay $20M in annual rent, which could rise depending on the ultimate cost of construction.
Bally's intends to meet the September 2026 opening date it initially planned, President George Papanier said in a statement.
“With keys to the property in hand, the new financing secured, a site plan that exceeds the original, and demolition set to start this summer, let there be no doubt that Bally’s Chicago Casino and Hotel will soon rise up along the Chicago River,” Papanier said.
Bally's also released new project renderings showcasing a 500-room, 34-story hotel tower alongside the expansive casino on the southern end of the development. The building will include a pool spa, fitness center and sundeck, as well as a rooftop restaurant bar.
Infrastructure issues earlier this year forced the company to redesign its proposal for the hotel, which Bally's initially planned for the north side of the development.
Bally's took possession of the former Tribune Publishing site last week and began preparing it for demolition this week. It is also planning to list the Chicago operations via public offering to raise up to 25% of the equity, intending to get minority- and women-owned businesses invested in the project.
GLPI is planning to provide about $2B in total funding to Bally's through the Chicago deal and two other transactions. The REIT has agreed to pay $395M for Bally's locations in Kansas City, Missouri, and Shreveport, Louisiana. Bally's will lease them back for $32.2M a year in base rent.
Bally's also intends to sell its Twin River Lincoln property in Rhode Island to GLPI by the end of 2026 for $735M. The casino operator will lease the property back for $58.8M a year.
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