Bally’s Corporation has announced that it secured $2.07bn in funding for the development of the first-ever casino in Chicago. [Image: Shutterstock.com]

Bally’s Corporation is in the process of developing Chicago’s first casino and has had to overcome certain challenges along the way. Issues over the location of a 500-room hotel caused consternation due to underlying water pipes and industry experts expressed concerns over the casino company’s ability to finance the project.

will initially charge Bally’s $20m rent per year

Bally’s has eased these concerns after announcing on Friday that it secured $2.07bn in funding from Gaming and Leisure Properties (GLPI), a real estate investment trust (REIT). In the deal, GLPI will own the real estate on which the property will be built and will initially charge Bally’s $20m rent per year.

As part of the agreement, GLPI will acquire the real estate of Bally’s Shreveport and Bally’s Kansas City properties for $395m. Bally’s also committed to selling the land of Twin River Lincoln in Rhode Island for $735m by the end of 2026.

The company also announced the new location of the 34-story hotel, which will be on the site’s southern end instead of the northern part. The current plan is for the property to open by the fall of 2026, at which point the temporary casino at Medinah’s Temple will close.

Talking about the deal, GLPI CEO and Chairman Peter Carlino said it will be “working hand-in-hand with Bally’s to bring this project to fruition on time and on budget.”