Bally’s will never deliver the $1.7 billion casino and entertainment complex in River West by a state-mandated September 2026 deadline — and may not have the financial wherewithal to build the project at all.
That’s the bleak assessment from one of the nation’s foremost experts on a gaming industry in free-fall.
Alan Woinski is the CEO of Gaming U.S.A. Corporation and editor of the Gaming Industry Daily Report.
He has watched cities like Detroit and New Orleans struggle to complete their ambitious casino projects.
And in Chicago, he believes the financial hurdles now confronting Bally’s — including an $800 million construction funding gap and a buyout offer from its largest shareholder that’s roughly half of what it was two years ago — are infinitely worse.
Which is why Woinski was not surprised when Mayor Brandon Johnson expressed his doubts about a casino deal Chicago is counting on to generate $200 million in annual revenue. Johnson, in fact, compared the situation to the cost-cutting deal he recently renegotiated with United and American airlines to proceed with the next phase of the O’Hare Airport expansion project.
It was an “invitation” to Bally’s to renegotiate a deal — a deal with timelines and features that Woinski views as impossible to deliver.
“He’s saying there’s not going to be any choice. … Let’s say Bally’s does find the money and it’s … at a very, very high interest rate for the financing. It just makes it that much harder for that property to achieve profitability. It doesn’t help anyone,” Woinski said.
“The one thing I’m certain of is we’re not going to have that full project by the end of 2026. … Whether there’s something in the permanent spot by 2026 — that’s going to be determined. I would not be surprised if we wind up with, ‘Let’s just get a better temporary casino. Build it out. It’s not going to cost as much. It’s the next best thing.’”
Bally’s Chicago General manager Mark Wong pushed back on critics Thursday, saying in a statement: “Our commitment to this project has never wavered and we are on track for a September 2026 opening.”
Bally’s plans to take possession of the River West site, 777 W. Chicago Ave., on July 5, when “work to prepare the site for demolition will begin immediately, such as capping water and electrical lines,” Wong said, adding that “details about the demolition timeline and financing are forthcoming.”
A vendor fair was held this week, the day after Johnson expressed his doubts. A public hearing to discuss demolition of the Chicago Tribune’s Freedom Center printing plant at the River West site is scheduled for Friday.
Last month, the company’s temporary casino at Medinah Temple set new highs for both admissions and gross receipts. But the May windfall still remains well below the ambitious projections included in Johnson’s budget.
None of that is enough to erase Woinski’s doubts about the prospects for the project.
“I hope they don’t put a shovel in the ground. Demolition is one thing. There’s nothing wrong with clearing the site and getting ready. But I really hope they don’t begin construction without getting the remaining financing. I’ve seen that way too many times in way too many locations over the past 30 years in this business,” Woinski said.
“We call certain places … [a] hole in the ground because they started and, for whatever reason, they never finished, either without financing or … a local group was able to hold it up,” he added.
“You don’t want that. That’s the worst thing for everyone. … I’ve seen it in Las Vegas, right on the Strip. I’ve seen … things start and then stop.”
Two months ago, two high-profile investors trying to block a takeover effort by the debt-laden corporation’s chairman, Soo Kim, warned that Chicago’s casino bet on Bally’s could go bust if the company goes private.
As Bally’s scrambles to secure $800 million to build its permanent casino in River West, investors from K&F Growth Capital warned in a letter to Bally’s board that Kim’s bid “jeopardizes the completion of the Chicago project, putting at further risk gainful employment and tax generation in Illinois.”
Wall Street ratings firms Moody’s and Fitch have downgraded Bally’s credit since March, with S&P Global highlighting “development and execution risks” for the company as it aims to break ground on its permanent casino at 777 W. Chicago Ave.
The company has committed to spending $1.7 billion on the project and is contractually obligated to spend at least $1.34 billion under the host city agreement signed by then-Mayor Lori Lightfoot’s administration. The gaming giant still hasn’t figured out where it’s putting a massive hotel tower on the River West site, after discovering earlier this year that the location in their original plan would damage city water pipes.
Yet another problem for Bally’s is the changing landscape for legalized gambling.
The once-booming market has been severely impacted by video gaming terminals in bars and restaurants and the proliferation of sports betting that allows gamblers to place bets using their cell phones.
“I don’t understand why any new [casino] licenses were granted in Illinois because this is a casino business, a state casino business that has been kind of in a death spiral since” video gaming terminals started, Woinski said.
“Why grant licenses to begin with anywhere in the state when you have a mature casino industry that is in decline? … It’s not just Illinois. It’s kind of nationwide. We’ve reached the saturation point. Whether that’s because of casinos, racetracks, video gaming terminals, sports betting, online gambling [or] all of those things combined, there comes a point where you say to yourself, ‘How many more gamblers can we possibly have?’ “
