Bally's Delays Tropicana Renovation, Foresees Chicago Casino Unveiling in Q3 2026
During their first-quarter earnings call this evening, Bally's (NYSE: BALY) informed analysts that they're in no hurry to redevelop the Tropicana Las Vegas location and anticipate their permanent Chicago casino will open in the third quarter of 2026 as anticipated.
CEO Robeson Reaves mentioned that the now-closed Tropicana is still on track to be demolished in October and that the firm is considering various options for the land, with Gaming and Leisure Properties (NASDAQ: GLPI) owning the land and reserving nine acres for a Major League Baseball stadium.
Bally's Treasurer Charles Diao stated that there's no sense of urgency at all since their option value increases the longer they wait to make a decision about the Tropicana site. He highlighted that their current capital requirements on the site are low and that there's "significant flexibility for various strategic options for the site, including a new integrated resort and entertainment district at the southern end of the Las Vegas Strip." The Tropicana location could further represent "expansion of the Bally's brand at one of the busiest intersections in the country," as suggested in the operator's investor deck.
Bally's Addresses Chicago Concerns
Confronting a $800 million capital shortfall and mounting criticism over its Chicago plans, Bally's reaffirmed its belief that their Chicago permanent casino is set to open in September 2026 and unveiled that they'll be able to access the Tribune site – the venue's future location – in July.
Bally's temporary casino at Medinah Temple in Chicago's River North district has recorded six uninterrupted months of growth in gross gaming revenue (GGR); however, some naysayers have pointed out that this may be due to heavy promotional spending.
This could suggest that Bally's is more focused on fortifying its customer database and top-line growth over ensuring profitability. In their investor presentation, they reported that more than 80,000 customers joined their loyalty program in Chicago throughout the first quarter, an improvement from the 60,000 additions in the previous year. The temporary casino is currently the second-most frequently visited gaming venue in Illinois and the second-biggest when assessing table game revenue.
“I'm not sure there’s a formula for determining how much ramp is sufficient,” commented CFO Marcus Glover on the call. “At the moment, profitability is slim, but that's by design.”
Nix on Takeover Talk Mentions
During the conference call, no acknowledgment was made regarding the potential for Bally's becoming a takeover target for GLPI. Simultaneously, executives didn't provide any additional details on the $15 per share grab offer from Standard General circulated in March aside from mentioning that a special committee of independent directors continues to scrutinize that bid.
Reeves additionally elaborated on Bally's New York plans, pointing out that the state's dragging process for approving three downstate casino licenses could be advantageous to them.
"In New York, the licensing and approval process is extending further. We now anticipate a decision from the state no earlier than late 2025. While this delay will shift the economic benefits from the planned integrated resort later into the future, it also lessens our immediate and medium-term financing needs," finished the CEO.
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Source: www.casino.org
