Bally’s Finalizes Its Chicago Casino Land Purchase

Bally’s Corporation officially confirmed on Monday that it has finalized its purchase of a 30-acre land in Chicago for $200 million. The deal is said to be a done deal.

Bally’s is set to construct the future of casinos in Illinois on a River West property, owned by the Chicago Tribune’s owners, Nexstar Media Group based in Dallas. The property, known as the Freedom Center, is situated at the intersection of Chicago Avenue and Halsted Street.

According to Monday’s announcement, the gaming corporation, Bally’s, won’t technically keep its property for a long time. It plans to sell the land and then lease it back. This strategy of leasing rather than having a deed allows the corporation to free up capital for their huge casino project.

In other words, the “ground lease” enables Bally’s to construct its $1.7 billion casino at Freedom Center, despite not having ownership of the property.

“In Monday’s announcement, Bally’s chairman Soo Kim expressed excitement for their partnership with a top Chicago-based real estate private equity firm. This partnership is pivotal in the progress of constructing their $1.7 billion flagship property in the Chicago market,” Kim said. “Our ongoing commitment towards delivering a world-class entertainment facility is evident, one that will undeniably boost both Chicago’s economy and its community.”

Millions spent ahead of the Chicago casino land purchase

Bally’s has also paid $40 million up front to secure a casino license before other potential buyers.

Lori Lightfoot, the Mayor of Chicago, utilized funds from the Bally’s bid to prevent a property tax increase prior to the election. The funds were also used to support the city’s police and fire pension fund. In addition, the Chicago City Council endorsed this with a 41-7 vote.

The finished project of Bally’s Chicago Casino is expected to make a significant impact on the riverfront, although it won’t be available for customers until 2026. The plans include:

• 3,400 slots
• 170 table games
• 10 dining and drinking establishments
• A hotel tower with 500 rooms and a rooftop bar.
• A spacious public riverwalk featuring a water taxi stop.
• An entertainment center that spans 65,000 square feet and has the capacity to seat 3,000 people.
• And a 20,000-square-foot exhibition, an outdoor music venue, as well as an outdoor green space.

Printing press and poker together … maybe

The land purchase for Bally’s Chicago casino could potentially halt the presses in the Windy City.

Over the past 41 years, the Freedom Center has acted as a printing hub for various publications, including the Chicago Tribune, NY Times, and Wall Street Journal.

Robert Channick from the Tribune has reported that his employers have decided to extend their printing plant lease at the Freedom Center for another 10 years. The current lease is due to expire in June 2023.

It is possible for printing to continue amidst the $1.7 billion casino project because the owners have a 30-acre space to utilize.

Channick informed his audience that Bally’s reserves the right to relocate Tribune operations from the current land. If such an event occurs, Nexstar has the option to transfer its printing operations to a currently unused plant in Milwaukee.

Bally’s temporary Chicago casino plans

A temporary casino at Medinah Temple in Chicago can commence wagering by June 2023 if all goes as per the plan. The establishment can remain operational for a maximum of three years.

The Medinah Temple, located at 600 N. Wabash Ave. in the River North district, is a recognized landmark in Chicago.

The establishment will accommodate approximately 800 gaming positions, in addition to offering food and drink choices.