Bally’s Corporation has secured a significant $2 billion in funding for its permanent casino in Chicago through a new lease arrangement with Gaming and Leisure Properties (GLPI). This arrangement marks a crucial step forward for Bally’s Chicago property, following a period of financial uncertainty.
An affiliate of GLPI has agreed to acquire the real estate underlying the project and amend the existing land lease with a new master lease agreement (Chicago MLA), making Bally’s Chicago the tenant. The lease will require Bally’s to pay $20 million annually, subject to escalation, and provides up to an additional $940 million in construction financing for the project’s hard costs through monthly draws.
The Chicago MLA has an initial term of 15 years with various renewal options. As part of the deal, GLPI will also have the option to acquire and lease back additional real property interests underlying Bally’s Kansas City and Bally’s Shreveport for $395 million. Additionally, Bally’s plans to amend its Contribution Agreement with GLPI to sell and lease back its Twin River Lincoln property for $735 million.
Under the Chicago MLA, Bally’s Chicago will receive a total of $2.07 billion in financing from GLPI, strengthening the strategic alliance between the two companies. GLPI, with its extensive experience in developing and constructing casino resort projects, is an ideal partner for Bally’s as they advance this major project.
Enhancing the Chicago skyline
Soo Kim, Chairman of Bally’s Corporation, expressed his enthusiasm about the deal with GLPI, highlighting that it fulfills Bally’s Chicago’s financing needs.
“We are delighted to continue our strong partnership with GLPI and to leverage its skilled resources and 30 years of experience developing and constructing successful gaming facilities. This is an amazing partnership that continues to pay strong dividends for both parties.”
Peter Carlino, CEO and Chairman of GLPI, also commented on the partnership, praising Bally’s Chicago project as an “iconic addition” to the city’s skyline. He expressed gratitude for Bally’s continued trust in GLPI.
“Strategically, this is a means to grow our asset portfolio within the gaming sector that we know well and allows us to create value for our shareholders. We have strong confidence in Bally’s team and will be working hand-in-hand with Bally’s to bring this project to fruition on time and on budget.”
Bally’s recently unveiled new renderings of its permanent Chicago casino hotel project, located at 777 W. Chicago Avenue. The development will feature a 500-room hotel, a 3,000-seat theater, a 2-acre public park, and multiple food and beverage options. The casino will boast 3,300 slots, 173 table games, and VIP gaming areas, promising a significant enhancement to the Chicago skyline.
