A soft opening may be in the cards for Bally’s Chicago, the $1.8 billion megaresort being financed and overseen by Gaming & Leisure Properties. That disclosure came from Truist Securities analyst Barry Jonas in an August 14 investor note.
Jonas reported that “despite delays, Chicago construction remains on track for a September 2026 opening (though not necessarily completion).”
Jonas acknowledged that “sentiment around Chicago is mixed,” but opined that a successful completion and opening could change feelings for the better. He added that Bally’s option on the Tropicana Las Vegas site could provide additional upside.
Second-quarter results for Bally’s were mixed. The company came in three percent under Jonas’s projection for cash flow, which ended up at $173 million. However, revenue of $658 million was a one percent outperformance.
Broken down divisionally, Bally’s cash flow missed some projections and exceeded others. Terrestrial casinos brought in $106 million, an 11 percent miss of Jonas’s forecast. International online cash flow, however, beat the prediction by three percent, generating $82 million. North American online operations brought in another $2.5 million, well ahead of Jonas’s projection of a $4.5 million negative return on investment.
According to Bally’s management, its casinos outgrew their markets in nine of 15 instances. Brick-and-mortar revenue of $393 million was highlighted, Jonas said, by strong performances in Baton Rouge, Vicksburg, and the Quad Cities area.
“That said,” the analysis continued, Bally’s executives “did acknowledge that several of its properties continue to face increased competition, specifically, Shreveport, Evansville, and Dover. Overall, management sees the regional gaming environment as stable for the time being.”
Although overall online revenues outside North America fell 10 percent, due to a Pacific Rim divestiture, they shot up 10 percent on a same-store basis. This, Jonas said, was driven by a nine percent uptick in the United Kingdom, “driven by strong player retention and monetization. Revenue growth in Spain continues, following the easing of advertising restrictions.”
In North America, online operations swung from a $7 million loss in the second quarter of 2024 to $2.5 million in black ink. Jonas credited the absorption of Queen Casino interactive businesses, as well as potent results in igaming and sports betting overall. BallyBet, he reported, “is focused on productive marketing and cost structure optimization.”
According to Jonas, Bally’s has submitted invoices to Chicago financier Gaming & Leisure Properties (GLPI) representing $53 million in construction costs. It expects to be reimbursed for the Bally’s Chicago outlay during the current third quarter.
Bally’s execs stood by their commitment to a September 2026 opening of the permanent casino in the Windy City. “While the Street sees that as potentially aggressive, we think it’s too early for management to comment otherwise,” Jonas allowed. He also pointed out that there was precedent in Illinois for regulators to extend the deadline by which Bally’s Chicago must open.
Of the $1.8 billion being spent on Bally’s Chicago, $1.2 billion is being extended by GLPI, plus an additional $250 million for site acquisition. Bally’s is committed to paying at least $300 million in rent over a 15-year period.
Jonas opined that Bally’s isn’t a frontrunner in the derby to obtain one of three available casino licenses in New York City, citing “an intense competitive environment” among the eight remaining bidders.
Bally’s ended the quarter with $240 million in cash on hand and $3.4 billion in debt.
