Demolition at the Freedom Center in the River West area of Chicago, home of Bally’s permanent casino hotel, commenced earlier on Tuesday. The regional casino operator previously finalized a $200 million sale-leaseback agreement on the property, which formerly housed the Chicago Tribune printing facility, in November 2022. The newspaper vacated the premises in May. Bally’s, based in Rhode Island, has been operating a temporary gaming venue at Medinah Temple at 600 N. Wabash Ave. for about a year.
The demolition is expected to span five months, with crews working 12 hours per day, seven days a week. Several restrictions govern the tear-down process: no explosives will be used, excavators will adhere to a 10-mile-per-hour speed limit, and hand excavation will be employed in certain scenarios. Health monitors employed by the city of Chicago will be present daily to ensure that the demolition does not generate excessive dust.
To comply with the city’s noise regulations, demolition will be confined to the hours of 8 a.m. to 8 p.m. each day. Bally’s has consistently affirmed that the permanent Chicago casino resort is scheduled to open in September 2026, and that timeline remains unchanged.
The demolition started approximately six weeks after Bally’s announced it had secured the necessary financing for the Chicago integrated resort, the most expensive project in the company’s history. In September, the gaming company entered into a series of agreements with real estate investment trust (REIT) Gaming and Leisure Properties totaling $2.07 billion. This deal enabled Bally’s to address an $800 million funding shortfall for the Chicago project. An affiliate of the REIT purchased the property assets linked to Bally’s Chicago and will finance up to $940 million in construction costs.
The venue, which will be the only casino within Chicago city limits, will include a 500-room hotel, six restaurants, a 3,000-seat theater, and a two-acre public park. The gaming area will house 3,300 slot machines and 173 table games. A revision in the plan situates the hotel on the southern part of the property; the initial northern location was found to potentially damage underground infrastructure, prompting criticism that the project was not thoroughly vetted by either Bally’s or the city.
Last month, Bally’s accepted an $18.25 per share takeover offer from Standard General, the hedge fund managed by Soo Kim, who is also Bally’s chairman. When the bid was proposed earlier this year, Kim assured that the acquisition would not impact Bally’s Chicago plans and reiterated his commitment to realizing the project. This assurance holds true today, with the gaming company confirming to some Chicago media outlets that the transaction will not affect its city plans.
The Illinois Gaming Board (IGB) has stated that it is aware of the deal and is monitoring the situation.
