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 USA Corp. and editor of the Gaming Industry Daily Report.
He has watched Detroit and New Orleans struggle to complete their ambitious casino projects. And in Chicago, he said 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 start the next phase of the O’Hare Airport expansion.
It was an “invitation” to Bally’s to renegotiate a deal that has timelines and features 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.’”
Mark Wong, Bally’s Chicago general manager, pushed back on critics in a statement issued Thursday: “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, at 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: “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 on demolishing the Chicago Tribune’s Freedom Center printing plant at the 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 erased Woinski’s doubts about 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.
“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,” said Woinski.
Two months ago, two high-profile investors trying to block a takeover effort by the debt-laden corporation’s chairman, Soo Kim, warned Chicago’s bet on Bally’s could go bust if the company goes private.
As Bally’s scrambles to fill that $800 million funding gap, 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.
The company has committed to spending $1.7 billion and is contractually obligated to spend at least $1.34 billion under the host city agreement signed with former Mayor Lori Lightfoot’s administration. And the gaming giant still hasn’t figured out where to put its hotel tower — turns out, the location in its 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 allowing gamblers to place bets using their cellphones.
“I don’t understand why any new [casino] licenses were granted in Illinois” given that the casino business nationally “has been kind of in a death spiral” thanks to video gaming terminals, Woinski said.
“Why grant licenses to begin with anywhere in the state when you have a mature casino industry that is in decline? … 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?’ “
