Bally’s has recently undergone a quest to go private to secure funding for its permanent Chicago Casino. Today, that quest proved successful. The company announced a merger agreement with Affiliates of Standard General L.P. The deal amounts to a buyout, and Bally’s stockholders will receive $18.25 per share in cash.
The agreement will see Bally’s combine with The Queen Casino & Entertainment Inc., which in turn is owned by Standard General. Illinois casino patrons might recognize the name: The Queen Casino & Entertainment Inc. owns and operates DraftKings at Casino Queen in East St. Louis, Illinois.
The company also owns and runs three additional casinos: Queen Marquette in Iowa, Queen Baton Rouge in Louisiana, and the Belle of Baton Rouge, also in Louisiana.
The Queen Casino & Entertainment Inc. will add Bally’s Chicago development to its list of ongoing projects.
What Does That Mean For Bally’s Chicago?
In the press release announcing the merger, Bally’s CEO Robeson Reeves said:
“Our team is well positioned to continue to execute on our initiatives to drive growth across all our segments including in our International Interactive business, North America Interactive and our Casinos & Resorts (“C&R”) segments, while proceeding with our development pipeline, including construction of our permanent casino resort in Chicago, for which we recently announced a comprehensive financing plan. The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio.”
As of now, it appears to be business as usual for the Bally’s Chicago development. In March 2024, the company formed a special committee to evaluate Standard General’s bid. The move came amid the lackluster performance of the temporary Bally’s casino in downtown Chicago. Going private would open new funding doors for Bally’s to build its Riover West complex at the former Chicago Tribune site.
Bally’s Chicago Still Targeting 2026 Opening
Just last week, Bally’s unveiled its new plan for its Chicago Casino. The plan now includes a single-phased construction project of the site’s 34-story hotel tower. The Chicago Department of Planning & Development still needs to approve the construction.
In announcing the new plan, Bally’s President George Papanier said Gaming and Leisure Properties agreed to finance the single-phase construction project, making up for an $800 million gap in funding. Bally’s remains optimistic that the casino complex will open in 2026. There are a lot of moving parts, though, so this writer is giving a cautious read on that prediction: I’ll believe it when I see it.
