Fitch Ratings and S&P, along with other credit rating agencies in Wall Street, are raising red flags about the Bally’s Chicago casino project, citing apprehensions about the company’s debt outlook.
The Bally’s casino project has been approved by the city, but the company is currently in the process of applying for approval from the Illinois Gaming Board. If all goes well, the casino is expected to open in 2025.
Chicago casino is a massive project for Bally’s
The development of a casino in downtown Chicago is a significant undertaking, attracting the interest of Wall Street.
There are numerous factors that could impede the advancement of the $1.7 billion project. It is not uncommon for major construction projects, especially in busy areas like River West, to experience delays.
Bally’s has never constructed this type of casino before, as they typically acquire existing properties that are already operational. Fitch Ratings and S&P have expressed concerns about the company’s capability to address unforeseen challenges in Chicago due to this unfamiliar territory.
Greg Hinz of Crain’s Chicago Business suggested that there may be a potential problem in the future when the company mentioned the possibility of reducing their rating. This is a major undertaking for a company that has not previously dealt with something of this scale. There are various potential challenges that could arise, especially in terms of finances, including high inflation, zoning conflicts, and other issues.
Looking at the numbers, Bally’s decision to take on significant debt for the Chicago casino project is raising eyebrows on Wall Street. Although the project has the potential to be lucrative in the long run, there are worries about the $1.7 billion investment and its impact on the company.
Temporary Chicago Casino
The main Bally’s building is set to open in 2025, but in the meantime, the company is constructing a temporary casino to serve gamblers. The construction of this interim building may provide insight into the upcoming Bally’s project.
The short-term casino at Medinah Temple, situated at 600 N. Wabash Ave., will open for business once preparations are complete, welcoming visitors who may not be familiar with the location.
Construction on the temporary building at Bally’s can’t start until the Gaming Board’s application process is finished. Bally’s has already turned in all the necessary paperwork, so there’s a chance the gaming authorities could grant them a license earlier than predicted.
