GLPI Executives Reaffirm Bally's Partnership as Chicago Casino Reaches Two-Thirds Completion
Summary
During the Q3 earnings call, Gaming & Leisure Properties Inc. (GLPI) executives reaffirmed support for Bally's Corp. and its $1.7 billion Chicago casino, which is roughly two-thirds complete with nearly 1,000 workers on site. COO Brandon Moore downplayed construction suspensions, and Chief Development Officer Steve Ladany said added amenities were already factored into underwriting, with the hotel and casino expected to be weather-tight by December. GLPI receives repayment in real time as funds are deployed, limiting exposure to Bally's delays, while defined rent-coverage ratios allow GLPI to seize properties in default.
Management also addressed Bally's August going-concern warning, citing available assets for liquidation until Chicago opens, and isolated the AU$260 million fine on Bally's Star Entertainment unit in Australia to that subsidiary. GLPI said it will not extend additional capital to Bally's Las Vegas without more visibility, and share repurchases remain a last resort amid higher capital costs. Executives stressed prioritizing quality transactions over volume.
(Source:Sccg Management)