Bally’s Corp. recently submitted its official casino license application to the Illinois Gaming Board. The company was selected to build a $1.7 billion casino complex in the River West neighborhood.
If the application is approved, Bally’s would open a temporary casino at Medinah Temple in nearby River North while constructing the permanent venue at the former Tribune Publishing plant site.
Christopher Jewett, vice president of corporate development at Bally’s Corp., said, “Bally’s submitted its casino license application to the Illinois Gaming Board. We look forward to working with the Illinois Gaming Board and the city of Chicago to bring a world-class entertainment destination resort to Chicago.”
The Chicago city council approved Bally’s as the applicant for the downtown license on May 25. Earlier, Mayor Lori Lightfoot chose Bally’s as the casino developer over Rush Street Gaming and Hard Rock International. City officials expect the $1.7 billion Bally’s casino complex to generate $800 million in annual revenue when it’s fully operational. That would generate about $200 million in tax revenue for the city to help fund fire and police pensions.
Bally’s pledged it would make the River West venue its “flagship property” and already gave the city a $40 million upfront payment. Officials said they plan to open a temporary venue at the Medinah Temple in the second quarter of 2023.
The casino complex would be developed in two phases, officials said. The $1 billion first phase would include 2,700 slot machines and 95 table games, with the possibility of expansion. In addition, this phase would include a 100-suite luxury hotel; an outdoor music venue with seating capacity for 500 to 1,000; green space; and dining options curated by One Off Hospitality, managed by James Beard award-winner and Chicago native Paul Kahan.
The $600 million second phase would kick in when Bally’s reaches a 20 percent return on investment. It would add 700 slot machines and 78 table games; six dining venues; a 400-room hotel tower with a rooftop pool and bar; and a 20,000-square-foot exhibition center featuring a Chicago-themed sports museum. An organization of River West residents has already asked Bally’s to forgo the proposed outdoor 3,000-seat entertainment venue.
Also last week, representatives from Bally’s Corp. have announced that its $308 million deal to acquire the operations of the Tropicana Las Vegas from real estate investment trust Gaming and Leisure Properties, Inc. (GLPI) will close at the end of next month, more than a year after it was first announced.
The company also indicated, however, that redevelopment and rebranding of the property likely won’t begin until late 2023.
On a recent earnings call, Bally’s CEO Lee Fenton said even though “it’s well-advertised that we intend to develop (the site) at some point in the future,” the company plans to “run the property on an as-is basis at least for the next 12 months until we have identified the plan and the partnerships that we want going forward.”
The deal still needs to be approved by state gaming regulators, and as of now the matter has not been scheduled for review for at least the rest of this month.
Per the language of the transaction, GLPI will retain ownership of the site , with Bally’s signing a 50-year lease agreement that would start at $10.5 million per year and gradually increase. Brandon Moore, general counsel for GLPI, said recently that the company has “a strong interest” in Bally’s future plans for the property.
Perhaps the other entity with the biggest interests in the Tropicana’s plans is the Oakland A’s, as the team is exploring their options as far sites for a new stadium, both in Oakland and Las Vegas. The Tropicana is one of two locations that the team is reportedly considering, with the other being a 27-acre plot behind Planet Hollywood.
The A’s have said previously that they would like to finalize their decision by the end of this year.
Another casino mogul is also talking to the A’s. Phil Ruffin, who owns the TI and Circus Circus in Las Vegas is negotiating with the A’s about buying the 73-acre Festival Grounds at the corner of Sahara Ave. and the Strip. Ruffin’s property was considered a dark horse in the
race at one time, but this is the second time that the A’s top brass have met with him about the property.
