{"id":325076,"date":"2024-07-12T09:48:01","date_gmt":"2024-07-12T14:48:01","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=325076"},"modified":"2024-07-12T11:13:35","modified_gmt":"2024-07-12T16:13:35","slug":"ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/","title":{"rendered":"Bally\u2019s Plugs Chicago Casino Funding Gap in $2B Deal with GLPI"},"content":{"rendered":"

Shares of Bally\u2019s (NYSE: BALY) surged Friday after the gaming company announced it will strike deals with Gaming and Leisure Properties (NASDAQ: GLPI) for an aggregate of $2.07 billion in financing. That closes an $800 million shortfall the operator faced on its Chicago casino hotel project.<\/p>\n

\"Bally's
Bally’s temporary casino in Chicago. The operator announced a series of agreements with GLPI that provide financing for the permanent casino in the Windy City. (Image: Chicago Tribune<\/em>)<\/figcaption><\/figure>\n

An affiliate of Gaming and Leisure — one of the largest owners<\/a> of gaming real estate — is acquiring the property assets associated with Bally\u2019s Chicago venture and will \u201cfund construction hard costs of up to $940 million at an 8.5% initial cash yield.\u201d That funding will be delivered from August 2024 through December 2026.<\/p>\n

In addition to the development funding of hard costs, GLPI also intends to acquire the Chicago land for approximately $250 million before development begins. Upon GLPI\u2019s purchase of the Chicago land, rent will commence under a new lease carrying a 15-year initial term with an initial cash yield of 8%,\u201d according to a statement issued by the real estate investment trust (REIT).<\/p><\/blockquote>\n

The announcement arrived at a critical time for Bally\u2019s in Chicago. In March, executives from the Rhode Island-based regional casino operator told the Nevada Gaming Control Board (NGCB) the company was facing an $800 million funding gap<\/a> in Chicago, stoking concerns that the much-ballyhooed debut of a casino resort in the city may not come to life.<\/p>\n

The lease agreement on the Chicago property has been amended to reflect annual rent of $20 million at a cap rate of 8.5%. Shares of Bally\u2019s are higher by 4.71% at this writing.<\/p>\n

More Details on Bally\u2019s Chicago Casino<\/h2>\n

By procuring the needed financing and, assuming various local regulatory approvals are granted over the near term, it\u2019s possible that Bally\u2019s could soon commence demolition of the Freedom Center, potentially positioning the operator to meet the expected September 2026 debut of the Chicago gaming venue.<\/p>\n

\n

Bally\u2019s also announced that the location of the 500-room hotel tower will be moved to the southern end of the property. The initial plan called for the hotel to be located at the northern end, but it was later discovered that would damage underground infrastructure, sparking criticism that neither Bally\u2019s nor the city had properly thought out the project.<\/p>\n<\/div>\n

The gaming company also implied it intends to move forward with an initial public offering (IPO) tied to the Chicago plan that is designed to allow local investors, including business owners and minority groups, to own up to 25% of the venture<\/a>.<\/p>\n

Other Moving Parts in Bally\u2019s\/GLPI Agreement<\/h2>\n

Before Friday, Bally\u2019s and GLPI had an existing relationship that was poised to grow, and not just because of the Chicago pact. As part of the broader agreement, the REIT is acquiring the real estate of Bally\u2019s Kansas City and Bally\u2019s Shreveport for a total of $395 million. The combined annual rent on those properties will be $32.2 million, \u201crepresenting an 8.2% initial cash capitalization rate.\u201d<\/p>\n

\n

The two sides also agreed to alter the terms of an agreement under which the REIT can acquire the property assets of Bally\u2019s Twin River casino in Lincoln, RI before the end of 2026 for $735 million, down from a previously agreed upon $771 million. Initial annual rent would be $58.8 million.<\/p>\n<\/div>\n

\u201cAs a part of the amendment, GLPI will be granted a right to call the Lincoln Transaction beginning in October 2026, coinciding with the scheduled maturity of Bally\u2019s revolving credit facility. All such transactions are subject to required regulatory approvals,\u201d according to the press release issued by the gaming company.<\/p>\n

GLPI already owns the property<\/a> associated with Bally\u2019s Tiverton Casino & Hotel. The REIT\u2019s existing New England footprint consists of the Tiverton venue, the \u00a0Hollywood\u00a0 Casino Hotel in Bangor, Maine, and Plainridge Park Casino in Plainville, Mass., both of which are operated by Penn Entertainment (NASDAQ: PENN).<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Bally\u2019s (NYSE: BALY) surged Friday after the gaming company announced it will strike deals with Gaming and Leisure Properties (NASDAQ: GLPI) for an aggregate of $2.07 billion in financing. That closes an $800 million shortfall the operator faced on its Chicago casino hotel project. An affiliate of Gaming and Leisure — one of […]<\/p>\n","protected":false},"author":46,"featured_media":322080,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,32093,86430,86438],"tags":[81897,81903,81966,86455,86457],"acf":[],"yoast_head":"\nBally\u2019s Lands Chicago Casino Funding in $2B Deal with GLPI<\/title>\n<meta name=\"description\" content=\"Bally\u2019s Plugs Chicago Casino Funding Gap with $2B in Deal with GLPI.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bally\u2019s Lands Chicago Casino Funding in $2B Deal with GLPI\" \/>\n<meta property=\"og:description\" content=\"Bally\u2019s Plugs Chicago Casino Funding Gap with $2B in Deal with GLPI.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-12T14:48:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-12T16:13:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/06\/Y6SRPXGWUFFG7EDRXMIV7WIZKA.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"799\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/\",\"url\":\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/\",\"name\":\"Bally\u2019s Lands Chicago Casino Funding in $2B Deal with GLPI\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/06\/Y6SRPXGWUFFG7EDRXMIV7WIZKA.jpg\",\"datePublished\":\"2024-07-12T14:48:01+00:00\",\"dateModified\":\"2024-07-12T16:13:35+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bally\u2019s Plugs Chicago Casino Funding Gap with $2B in Deal with GLPI.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/06\/Y6SRPXGWUFFG7EDRXMIV7WIZKA.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/06\/Y6SRPXGWUFFG7EDRXMIV7WIZKA.jpg\",\"width\":1200,\"height\":799,\"caption\":\"Bally's temporary casino in Chicago. The operator announced a series of agreements with GLPI that provide financing for the permanent casino in the Windy City. (Image: Chicago Tribune)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Bally\u2019s Plugs Chicago Casino Funding Gap in $2B Deal with GLPI\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bally\u2019s Lands Chicago Casino Funding in $2B Deal with GLPI","description":"Bally\u2019s Plugs Chicago Casino Funding Gap with $2B in Deal with GLPI.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/","og_locale":"en_US","og_type":"article","og_title":"Bally\u2019s Lands Chicago Casino Funding in $2B Deal with GLPI","og_description":"Bally\u2019s Plugs Chicago Casino Funding Gap with $2B in Deal with GLPI.","og_url":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2024-07-12T14:48:01+00:00","article_modified_time":"2024-07-12T16:13:35+00:00","og_image":[{"width":1200,"height":799,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/06\/Y6SRPXGWUFFG7EDRXMIV7WIZKA.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/","url":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/","name":"Bally\u2019s Lands Chicago Casino Funding in $2B Deal with GLPI","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/06\/Y6SRPXGWUFFG7EDRXMIV7WIZKA.jpg","datePublished":"2024-07-12T14:48:01+00:00","dateModified":"2024-07-12T16:13:35+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Bally\u2019s Plugs Chicago Casino Funding Gap with $2B in Deal with GLPI.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/06\/Y6SRPXGWUFFG7EDRXMIV7WIZKA.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/06\/Y6SRPXGWUFFG7EDRXMIV7WIZKA.jpg","width":1200,"height":799,"caption":"Bally's temporary casino in Chicago. The operator announced a series of agreements with GLPI that provide financing for the permanent casino in the Windy City. (Image: Chicago Tribune)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/ballys-lands-chicago-casino-funding-in-2b-deal-with-glpi\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Bally\u2019s Plugs Chicago Casino Funding Gap in $2B Deal with GLPI"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/325076"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=325076"}],"version-history":[{"count":4,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/325076\/revisions"}],"predecessor-version":[{"id":325092,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/325076\/revisions\/325092"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/322080"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=325076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=325076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=325076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}