With MLB moving to Las Vegas with the Athletics heading into the 2028 season, there are construction projects surrounding the new stadium. Built on the former site of the Tropicana Las Vegas on the Las Vegas Strip, there were plans for casino resort operator Bally’s to build two hotel towers, a casino and sportsbook, retail and dining space, along with a nine-acre plaza alongside this ballpark. However, this construction project has drawn some financial concerns, causing Bally’s to shift their approach.
Bally’s project at the Athletics’ new Las Vegas ballpark is now being broken into different phases. The change in plans allows construction around the stadium to move forward without Bally’s immediately committing to the full casino-resort development.
The A’s are responsible for constructing the ballpark, while Bally’s controls the surrounding on-site development. Under the revised plans, the initial work will focus on infrastructure needed to support the site, including a 1,500-space parking garage. The following phase is expected to include a podium, 2,500-seat theater and additional parking, while Bally’s casino and hotel would come later.
The phased approach comes at a time when Bally’s is facing financial concerns. The company recently acknowledged there is substantial doubt about its ability to continue operating without securing additional liquidity. Bally’s has roughly $4.5 billion in long-term debt. They are currently exploring options such as raising equity and monetizing assets to strengthen its financial position.
At the same time, Bally’s has several development projects that require capital. The company is moving forward with a multi-billion-dollar casino project in New York and its permanent casino in Chicago.
To that end, delaying the casino and hotel portions of the Las Vegas development with a phased approach gives Bally’s more time before it needs to commit additional capital to the project.
However, there are still question marks surrounding Bally’s involvement in the Las Vegas project.
There is also uncertainty over whether Bally’s will ultimately develop its planned casino-resort surrounding the Athletics’ ballpark. According to the Las Vegas Review-Journal, the company has received interest to acquire the development rights for approximately $1.1 billion.
A sale could provide Bally’s with a significant source of cash at a time when the company is facing financial pressure. With the company seeking liquidity to help with its $4.5 billion in long-term debt, a sale of the Vegas project could help it acquire capital for major casino developments in Chicago and New York.
However, Bally’s has indicated that they plan to continue with the Vegas project despite these question marks.
Bally’s project comes at a time when operators are reconsidering the value of retail sportsbooks at professional sports venues. Mobile betting now accounts for the overwhelming majority of wagering in states where online sports betting is legal, reducing the need for fans to visit a physical sportsbook to place a wager.
We saw an example of this when DraftKings recently closed its retail sportsbook next to Wrigley Field in Chicago. The venue now solely functions as a sports bar.
Bally’s Las Vegas project would be different because the sportsbook would be part of a much larger integrated resort rather than a standalone stadium sportsbook.
However, the DraftKings example in Chicago sheds some light on the declining popularity of retail sportsbooks. It raises the question whether a retail location is even necessary at the Athletics’ new ballpark.
