Bally’s Gets New Rating Blow Because of Chicago Project

Bally’s Corporation is facing yet another financial setback as a leading Wall Street ratings agency has downgraded its credit once more. 

Award-winning provider of “credit ratings, commentary, and research,” Fitch Ratings, announced it dropped Bally’s rating from “B” to “B-” due to “execution risk in the development of the Chicago projects,” along with a series of additional financial concerns. 

The decision is yet another tough blow for the gaming giant that is currently preparing to spearhead Chicago’s first casino.

Bally’s Should Have Enough Money to Finish the Project

Despite the downgrade, analysts at Fitch believe Bally’s “should have sufficient funding to complete” its highly anticipated $1.7 billion casino resort at 777 W. Chicago Ave. 

The venue that will officially open its doors to the public in September 2026 is expected to considerably boost the city’s entertainment landscape.

However, the company’s success in the long run is far from being guaranteed in Chicago, with Fitch emphasizing several potential obstacles in the way. 

The list includes the city’s “saturated” gaming market, the gaming tax that is “higher-than-average,” and the “typical ramp-up” associated with new casino projects.

At the start of the year, the company also pursued a potential property tax cut over 12 years for the permanent casino and hotel.

Rising Financial Pressure 

Since it managed to secure the coveted casino license in the city in 2022, Bally’s has been struggling with a series of financial pressures. 

Because of its lower credit ratings, its borrowing costs are higher, which makes it more expensive for the company to secure funding for its ambitious projects. 

In 2024, Bally’s managed to get its hands on $940 million in private financing. However, a separate plan to raise $250 million through an initial public offering targeted at women and minority investors is at a roadblock, still pending approval from the U.S. Securities and Exchange Commission.

To compensate, Bally’s has begun selling $195 million in private shares while continuing efforts to revive its minority investment initiative. 

The program, which is a requirement part of its agreement with the city, is still a contentious issue. 

Conservative-backed plaintiffs have filed lawsuits arguing that the initiative discriminates against white male investors. The legal battles are still unresolved.

Fitch suggests that Bally’s could regain a more favorable credit rating if it secures “[r]esolution on Chicago funding commitments” and meets other financial benchmarks.

The city is counting on the casino to generate much-needed tax revenue for Chicago’s police and fire pension funds.

Despite these challenges, Bally’s remains a significant player in Illinois’ gaming industry. Last week, the company celebrated a milestone when it welcomed its two millionth visitor since opening its temporary casino at the historic Medinah Temple in 2023.

In February, Fitch Ratings assigned junk rating to DraftKings, using ongoing risks as an argument.