Bally’s Corporation has secured a monumental $2 billion in funding for its permanent Chicago property, marking a significant milestone in the evolution of the city’s gaming landscape. This financial boost comes through a strategic new lease arrangement with Gaming and Leisure Properties (GLPI), effectively pulling Bally’s out of a challenging period of financial uncertainty. The deal involves an affiliate of GLPI acquiring the real estate underlying the Chicago project and modifying the existing land lease into a newly structured master lease agreement (MLA) with Bally’s Chicago as the tenant. Under this new Chicago MLA, Bally’s will pay an annual rent of $20 million, with possibilities for this amount to increase in the future.
An integral part of the MLA is the provision for up to $940 million in additional construction financing, which will be disbursed on a monthly basis to cover the project’s hard costs. The lease agreement extends for an initial term of 15 years, with multiple options for renewal, ensuring a long-term partnership. Beyond the Chicago project, GLPI has the option to acquire and lease additional real property interests from Bally’s in Kansas City and Shreveport for $395 million. Furthermore, Bally’s plans to amend its Contribution Agreement with GLPI to include a sale and leaseback of
An integral part of the MLA is the provision for up to $940 million in additional construction financing, which will be disbursed on a monthly basis to cover the project’s hard costs. The lease agreement extends for an initial term of 15 years, with multiple options for renewal, ensuring a long-term partnership. Beyond the Chicago project, GLPI has the option to acquire and lease additional real property interests from Bally’s in Kansas City and Shreveport for $395 million. Furthermore, Bally’s plans to amend its Contribution Agreement with GLPI to include a sale and leaseback of its Twin River Lincoln property for $735 million, reflecting the dynamism and scale of their collaboration.
The financial agreement underscores the close strategic alliance between Bally’s and GLPI, aligning their interests in bolstering the gaming sector. GLPI’s proven track record in the development and construction of casino resorts brings an invaluable advantage to Bally’s, fueling hopes for a successful and timely completion of the Chicago project. Soo Kim, Chairman of Bally’s, expressed his enthusiasm for the substantial sale-leaseback deal, acknowledging it as a crucial step in meeting Bally’s Chicago’s financial requirements. His statement resonates with the shared excitement for a partnership that continues to deliver strong dividends for both
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