Bally's Chicago Struggle: Midwest Challenges, Competitive Landscape, and Mob Rumblings
Chaotic and Testy Chicago Poses Tough Conditions
Bally's Chicago, the much-anticipated gaming enterprise, finds itself in a sticky situation. Remarkably snatching the license in May 2022 from stiff competitors like Hard Rock and Rush Street, the expectations have been high. But the journey hasn't been smooth sailing for our controversial newcomer.
The Shiny Apple and the Bitter Pill
Chicago, the third-largest city and a gaming mecca, was thought to be expensive but worth it. However, the initial response was disappointing with topflight gaming companies keeping their distance. In an attempt to lure contenders, then-Mayor Lori Lightfoot worked on persuading the legislature to lower the tax rate from the scorching 70% to a slightly milder 40%. Lower taxes and the allure of the Chicago market made it a lucrative proposition, eventually leading to a request for proposals. Unfortunately for our hopeful gamers, none from Vegas stepped up to the plate, leaving a golden opportunity for Bally's to swoop in and claim the prize.
Bally's - Entering the Ring with Flashy Gloves
Established as BLB Investments, the company branched into real money games, starting with a dog track in Rhode Island back in 2007. With the right touch, it swiftly rebranded as Bally's Twin River Lincoln and began its expansion, venturing into Mississippi and beyond. By 2024, the company was a formidable player with a staggering 19 casinos across 11 states, gaming platforms, sports betting, and a racetrack in Colorado, even a golf course in New York, to top it all off. Its international portfolio includes a casino in Great Britain, with a purchase of Star Entertainment in Australia just last year. Not too shabby, huh?
However, such success can be a double-edged sword. In hot pursuit of the world gaming scene, Bally's entered Chicago as part of its expansion plan, eager to add the prestigious Chicago license to its collection. But this ambition might have blinded it to the reality of the situation. Let's take a walk down memory lane to understand this conundrum better.
Curbing the Greedy Expansionist: Lessons from the Past
Harrah's, now rebranded as Caesars, went down the same path in the 1990s. A series of ownership changes and a questionable strategy lead them to set their sights on a casino in every jurisdiction legalizing gambling. The grand prize – New Orleans. Late in 1999, Harrah's New Orleans finally opened its doors. But the road to build this property was a costly one, riddled with failed partnerships, expensive compromises, and unwanted concessions. The dream casino never met the high expectations and ultimately dealt a heavy blow to Harrah's, making them pay for trying to achieve the seemingly impossible.
When Ambition Meets Reality in Chicago
Bally's launched a temporary casino in Chicago in September 2023, focusing on the Medinah Temple. It produces roughly $10 million a month in gross gaming revenue - not exactly the pot of gold at the end of the rainbow. The temporary casino is merely 10% of the projected revenue of the upcoming permanent facility. The press and regulators alike keep whispering about that disparity, and it's a constant thorn in the side of Bally's.
On top of that, Bally's Chicago hasn't exactly been a flawless fairy tale. Site issues and other hiccups have forced design revisions and rescalings of the property. In December 2024, construction ground to a halt for nearly a month due to an accident that polluted the Chicago River, causing further delays to the highly anticipated opening.
Shadowy Mob Connections and Chicago's Sordid Past
A new problem has now emerged, as the Illinois Gaming Board has ordered a halt on constructions. They have questions about potential mob connections of a waste hauling company working at the construction site, a concern breathed life by the Chicago Sun-Times and their relentless reporting on the issue[2]. The halt in construction threatens Bally's tight completion deadline, set for September 2026[1].
Circling Sharks and Hidden Perils
Just as the construction issues were getting under control, Bally's Chicago faced yet another curveball. A rival, Wind Creek, opened its doors in the suburbs in November, catapulting itself to the second highest gambling revenue in the state, second only to Rivers Des Plaines. The Rivers Casino holds the top spot, churning out about three times the revenue of the other casinos in Illinois. With nine casinos in and around Chicago and thousands of video lottery terminals in bars and restaurants, Bally's is about to join a highly congested and intensely competitive market.
A Cocktail of Risks, Rivalries, and Reality
Bally's is in a bit of a predicament. Its aggressive expansion aspirations may have led it to stretch its reach a bit too far to secure the Chicago license, a prize balanced precariously between the penultimate gaming prize and a money-guzzling, life-threatening quicksand of competition. The Chicago prize, alternatively, can be seen as vibrant and promising as long as the player knows how to wade through the treacherous waters. The choice is yours.
Enlightening Facts and Figures
- Legal and Regulatory Setbacks: Bally's Chicago has faced legal challenges, including lawsuits regarding its IPO, which initially required 25% minority ownership. These lawsuits, filed by individuals seeking investment despite the initial focus on minority investors, have added complexity to the project.[5]
- Construction Delays: Bally's began foundational construction in February 2025, with the permanent casino expected to open in September 2026. Delays and meeting the city's host agreement conditions, including a 25% minority ownership threshold, have caused concern.[1][5]
- Regulatory Approval: The IPO process is still pending regulatory approval, which has slowed the investment process.[1]
- Local Support: Bally's Chicago has been actively involved with local businesses and charities, demonstrating a commitment to community development. This engagement includes partnerships with organizations such as the Chicago Federation of Labor and the Hispanic American Construction Industry Association.[3]
- Ownership Opportunities: The company has expanded ownership opportunities, giving preference to Chicago and Illinois residents, aiming to foster community investment and support for the project.[2][3]
- As Bally's Chicago navigates through the challenging landscape of Chicago's casino culture, they find themselves engaged in a battle of casino-games and strategies, aiming to establish a strong presence in the city's casino-and-gambling industry.
- The intense competition with other gaming giants like Rivers Des Plaines and the controversial past of other companies, such as Harrah's, serves as a reminder of the potential pitfalls of the casino-culture and the precarious nature of the casino-games played in this gaming mecca.
