CHICAGO CITY HALL (WBBM Newsradio) -- Executives at Bally's are raising a new alarm about the company's financial situation, even as work continues on a permanent casino along the Chicago River.
The company told federal regulators in a filing late Friday that challenges involving "liquidity" are raising what it called "substantial doubt about the company's ability to continue as a going concern."
Essentially, Bally's doesn't have enough cash on hand to satisfy its lenders. It's exploring ways to raise money, either through selling off assets or restructuring some loans, but the "going concern" warning means it believes it may not be able to get through the next 12 months without seeking bankruptcy protection.
Bally's has suggested those liquidity issues have nothing to do with Chicago aldermen's vote legalizing neighborhood video gambling terminals, which it cited when it announced last week that it's delaying construction on the non-gaming parts of its permanent casino. The company has also hinted it will not make a $4 million payment to the city next month as required in the casino agreement because of the dispute.
The video gambling terminal vote came as part of a budget approved over the objections of Mayor Brandon Johnson. The state has signed off on permits for dozens of VGTs in Chicago, but the city has yet to issue a license.
"Bally's is a company that's really struggling on a lot of levels right now," Chicago Ald. Brian Hopkins said last week after the company announced it was delaying construction on its hotel, restaurants and event spaces inside the future casino site at Chicago and Halsted. "It was the main reason that I opposed Bally's when they were selected. They didn't seem to be in a strong financial position."
"That is now being borne out across the country," added Ald. Hopkins (2nd Ward), whose downtown ward is the location for Bally's temporary casino in the old Medinah Temple.
A Bally's spokesperson says the company has the financing to finish the Chicago project, and the gaming floor is on track to be finished early next year. At least 28 aldermen have written a letter calling on Bally's to resume construction on the entire project, and are reportedly planning a City Council hearing next month to discuss the status of the casino.
We've asked Mayor Johnson's office for comment on the latest disclosures from Bally's.
Execs: "Going concern" alert not tied to Chicago dispute
Execs: "Going concern" alert not tied to Chicago dispute
