Chicago: A City Swarming with Challenges and Congestion
Heading to the Windy City, Bally's is drowning in a storm of challenges. After bagging the Chicago casino license back in 2022, they're facing a turbulent ride, to say the least. The competition isn't shy, and they're not alone – Chicago's terrain is a costly yet enticing flex for any gaming powerhouse.
Bally's initial bid was a game-changer – promising $800 million in adjusted gaming revenue annually. Sounds like a jackpot, right? Well, things have turned sour. The city's less enthusiastic now, the taxes are higher than anticipated, and big names in Vegas aren't taking a chance. But Bally's didn't let that discourage them; this ambitious company has casinos in eleven states and one in blighty already, and they're hungry for more.
They kicked things off at a temporary casino in the Medinah Temple in 2023, but it's barely breaking even with only $10 million per month in gross gaming revenue. That's chump change compared to the projected revenue for the permanent facility. The press never misses a chance to remind everyone of that, along with listing their ongoing issues.
The construction halted in December 2024 due to an accident that polluted the Chicago River, and then the Illinois Gaming Board stepped in. Questions about suspect subcontractors – with ties to the mob – and Wall Street's scrutiny over Bally's financial struggles have put a damper on things. As if that wasn't enough, a new competitor, Wind Creek, opened in the suburbs, quickly securing the second spot in Illinois' gambling revenue rankings.
Rivers Des Plaines reigns supreme with revenues three times those of other Illinois casinos, while a bunch of gambling joints clustered around downtown Chicago and thousands of video lottery terminals in bars and restaurants are hot on their heels. Competition in this densely populated gaming arena is fierce, making Bally's path to success a perilous one.
Adding fuel to the fire, a lawsuit disrupted the IPO needed to fulfill the minority requirements, and design changes have been necessary to avoid damaging existing infrastructure. Plus, environmental delays – such as the three-week pause following debris spillage into the Chicago River – have contributed to project delays.
So, is Bally's Chicago venture the penultimate prize or a quicksand death trap? Only time will tell. That said, their expansion goals, coupled with the intense competition, stretch them dangerously thin. They'll need to tread carefully to avoid drowning in the City of Big Shoulders.
Sources:[1] https://www.chicagobusiness.com/development/its-going-be-hard-make-chicago-casino-work-until-someone-proves-otherwise[2] https://www.chicagobusiness.com/development/rapper-tyler-the-creator-in-on-the-chicago-casino-action-with-an-investment[3] https://www.bloomberg.com/news/articles/2023-05-24/bally-s-swinging-for-the-fences-in-chicago-is-it-home-run-time[4] https://www.chicagotribune.com/business/ct-entertainment-ballys-chicago-casino-dilemma-lucrative-but-expensive-20241106-vsqbrwldzxhbk6an65xbtxvmmq-story.html[5] https://www.chicagotribune.com/business/ct-entertainment-ballys-chicago-casino-temporary-facility-falls-short-newsletter-20231209-gz7mbxrabnjw7dfiatfjuhcp4m-story.html
- Despite the challenges, Bally's is determined to make a mark in Chicago, a city renowned as the City of Big Shoulders.
- Bally's, backed by the ambitious investment of $800 million, aims to carve out a significant share within Chicago's casino-and-gambling sector, a territory currently dominated by Rivers Des Plaines.
- The competition in Chicago's gambling arena is fierce, with numerous casinos in the downtown area and video lotteries in bars and restaurants vying for market share.
- In the midst of the turbulence, Wind Creek has emerged as a formidable competitor, securing the second spot in Illinois' gambling revenue rankings, adding to Bally's woes.
- The Bally's project has been fraught with problems, including construction halts, environmental concerns, and allegations of ties with suspect subcontractors, testing the company's resolve and finances.
- Amidst theacement of casinos, lotteries, and gaming personalities, Bally's must navigate the competitive landscape responsibly, ensuring they don't get swept away in the vibrant casino culture of Chicago.
