Bally’s Casino Project Facing Stern Eye From Wall Street

Credit rating agencies on Wall Street, including Fitch Ratings and S&P, are expressing concerns about the prospects of the Bally’s Chicago casino project. They are particularly worried about the outlook on the company’s debt.

The city has already approved the Bally’s casino project, but the company is still in the application process with the Illinois Gaming Board. If everything goes smoothly, the casino is set to open in 2025.

Chicago casino is a massive project for Bally’s

The construction of a casino in downtown Chicago is a huge project, so much so that it has caught the keen attention of Wall Street.

A multitude of factors could potentially hinder the progress of the $1.7 billion project. Delays are common in major construction projects, particularly in bustling areas such as River West.

This type of casino has never been built by Bally’s before. Typically, the company purchases already existing properties across the country that are essentially ready to operate. This has led to doubts by Fitch Ratings and S&P about the company’s ability to handle unexpected challenges in Chicago.

Greg Hinz from Crain’s Chicago Business stated, “Essentially, they hinted at a potential issue by saying, ‘There’s a chance we might reduce the rating in the future.’ It’s a significant venture for a company that hasn’t undertaken anything of this magnitude. There are numerous potential problems that could arise, particularly on the financial front, such as high inflation, zoning disputes, and a host of other issues.”

From a mathematical perspective, Bally’s is acquiring substantial debt to manage Chicago’s casino project. While this could be a profitable long-term investment, Wall Street is currently concerned about the potential consequences of the $1.7 billion project for the company.

Temporary Chicago Casino

The primary Bally’s building is scheduled to open in 2025, however, a temporary casino is currently being constructed by the company to cater to gamblers in the interim. The construction of this provisional building might offer a glimpse into the future of the main Bally’s project.

Once ready for action, the short-term casino will open at Medinah Temple, located at 600 N. Wabash Ave. for those unfamiliar with the area.

Before Bally’s can begin construction on the temporary building, it must first complete the Gaming Board’s application process. The company has already submitted its paperwork, so it’s possible that gaming authorities might issue a license to Bally’s sooner than expected.