Fitch Downgrades Bally’s Rating Over Chicago Casino Risks

Bally’s took another blow to its financial standing as Fitch Ratings dinged its credit for the second time in two years.

Fitch downgraded the gaming company from B to B-, citing risks tied to its Chicago casino project and a broader debt load, the Chicago Sun-Times reported.

The downgrade is the latest in a string of rating cuts for the Rhode Island–based company after it was awarded Chicago’s sole casino license in 2022. Standard & Poor’s and Moody’s have also lowered the company’s rating.

Fitch analysts flagged “execution risk” on Bally’s planned $1.7 billion permanent casino at 777 West Chicago Avenue in River West, pointing to a crowded local gambling market and high taxes, plus the usual strain of a major casino rollout.

The project’s plans call for a 500-room hotel, entertainment venues, restaurants and public spaces.

Bally’s appears to have enough funding to complete the project slated to open in September 2026, Fitch said. But the lower rating could make it harder and more expensive for the company to borrow money moving forward.

Bally’s secured $940 million in private financing last year to plug a construction funding gap, at the time hushing doubts surrounding the project.

But it has since faced delays in launching a planned $250 million initial public offering. The IPO was to satisfy an agreement with the city of Chicago that at least a quarter of the casino’s equity be held by minority and women investors.

The IPO, a centerpiece of Bally’s equity strategy, has not received approval from the Securities and Exchange Commission, and it is tied up in litigation from conservative groups who claim it is discriminatory.

The company has instead begun selling $195 million in private shares while continuing efforts to relaunch the minority investment vehicle.

Bally’s has also applied for a property tax incentive that could save it up to $300 million over 10 years, though the proposal has stalled at City Hall.

Meanwhile, revenue from Bally’s temporary Medinah Temple casino continues to fall short of expectations.

The casino brought in under $8.8 million in February, the lowest monthly haul in more than a year, amid competition from Wind Creek’s south suburban casino.

Returns remain below projections, but customer interest is growing in the future permanent site, Bally’s CEO Robeson Reeves said in a recent report.

A credit upgrade could still be in play for Bally’s if it secures more solid funding commitments for its Chicago casino, Fitch said.

— Judah Duke