Bally’s plans for its $1.7 billion casino to be built in the River West section of downtown Chicago have taken an unexpected turn, as infrastructure concerns have caused the hotel tower portion of the project to be shifted.

Bally’s originally proposed a 500-foot hotel tower to be built on the north end of the site. However, Bally’s Chairman Soo Kim told the Chicago Tribune last week that driving caissons into the ground — which would allow construction work to be carried out underwater — could potentially damage municipal pipes.

A Bally’s spokesperson said “an alternate plan has been submitted to the city to move the hotel tower on the site and to stay on schedule for 2026,” though what that new plan looks like has yet to be determined. Any plans for the new tower would require approval by the planning department’s zoning administrator, but Bally’s has zoned the entire parcel of land to allow for hotel construction.

Bally’s construction on the casino portion of the site is expected to be moved to the southern part of the parcel, according to Kim.

Construction still expected to start in 2024

Editorial: The changes Bally's wants at the Freedom Center site merit public scrutiny https://t.co/fjaXN8ciuk

— Crain's Chicago Business (@CrainsChicago) January 22, 2024

The Bally’s spokesperson’s statement added that the company is “looking forward to getting shovels in the ground in 2024,” but the latest rejiggering of the project adds to the urgency of having the casino doors open by September 2026. Bally’s has yet to break ground at the River West location, but it cleared all the decks to do so last year after reaching an agreement to pay $150 million to Tribune Publishing to vacate the Freedom Center by July.

Bally’s has already received a 12-month extension from the Illinois Gaming Board regarding the opening of the permanent venue. State law requires a licensee to open its permanent venue exactly two years after the opening of the temporary venue, but a licensee can ask for one 12-month extension if it can show “good cause” to the IGB. Bally’s quickly went from preliminary suitable in June to opening its doors at Medinah Temple early last September prior to being granted the extension in late October.

The temporary casino has generated $30.4 million in adjusted gross revenue since opening, resulting in $3.9 million in state tax revenue and an additional $3.1 million in tax revenue for the city of Chicago over the final three-plus months of 2023. The city budgeted $35 million in gaming taxes from Bally’s as part of its 2024 budget based on its expectation Bally’s would generate $243 million in revenue.

Previous Chicago Mayor Lori Lightfoot chose Bally’s proposal in May 2022 over ones submitted by Hard Rock and Rush Street, with Bally’s $40 million upfront payment after being chosen the city’s preferred operator a key selling point during her failed reelection campaign. The city showed surprising speed in moving the project through City Hall once Lightfoot chose Bally’s, which submitted its application to the IGB for the city’s casino license in August of that year.

In addition to the hotel tower that would have an additional 400 rooms, Bally’s River West proposal also calls for a 3,000-seat theater and 65,000-square-foot convention center. The casino, which is scheduled to be built during the first phase of construction, will have approximately 2,700 slots and 95 table games.

Image courtesy Bally’s Casino