Bally’s Corporation has announced a significant strategic construction and financing arrangement with Gaming and Leisure Properties, Inc. (NASDAQ: GLPI), securing funding for the development of Bally’s permanent casino in Chicago. This collaboration marks a major milestone towards the commencement of construction and the projected opening in September 2026.
An affiliate of Gaming and Leisure Properties will acquire the real estate underlying the Chicago casino project, amending the existing land lease with Bally’s Chicago Operating Company, LLC. The new master lease agreement (Chicago MLA) sets the annual rent at $20 million, with annual escalators. The Chicago MLA also includes up to $940 million in construction financing for the project’s hard costs, disbursed through monthly draws.
Additionally, Gaming and Leisure Properties will acquire and lease back properties underlying Bally’s Kansas City and Bally’s Shreveport for $395 million, generating $32.2 million in initial annual rent. Proceeds will be used to repay Bally’s revolving credit facility and for general corporate purposes.
Bally’s plans to amend its Contribution Agreement with Gaming and Leisure Properties and sell and lease back its Twin River Lincoln property for $735 million by the end of 2026, with an initial annual rent of $58.8 million. GLPI will have a right to call the Lincoln transaction beginning in October 2026.
The Chicago MLA and construction funding arrangement will be obligations of Bally’s Chicago as tenant, including customary representations and funding conditions typical for large-scale casino resort developments.
In total, GLPI will provide up to $2.07 billion in financing, reinforcing the strategic alliance between the companies. GLPI’s extensive experience in casino resort development and construction oversight will be invaluable to Bally’s as it progresses with the Chicago project.
Soo Kim, Chairman of Bally’s Corp., commented, “Our agreements with GLPI fulfill the construction financing requirements, allowing us to bring the Bally’s Chicago permanent casino and entertainment complex to River North by the fall of 2026. 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, Chairman and CEO of GLPI commented, “We are excited to partner in Bally’s Chicago marquee development project which will be the flagship of Bally’s platform, and an iconic addition to the Chicago skyline. We are appreciative of Bally’s trust in GLPI as its selected strategic financing partner. This is a natural extension of our corporate growth strategy to work closely with tenants and finance the construction of development projects, and to pursue built-to-suit partnerships in the gaming sector where we have experience and can contribute GLPI’s extensive, proven development and construction capabilities. 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.”
