Demolition begins for permanent Bally's casino, hotel at former Chicago Tribune publishing site

CHICAGO (WLS) -- Demolition started Tuesday, at the future home of Bally's permanent Chicago casino.

An excavator brought down the first pieces of the former Chicago Tribune publishing center at Chicago Avenue and Halsted Street, while Queen's "We Will Rock You" played Tuesday morning. The facility closed in May.

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It's estimated demolition will take three to four months, with crews working 12 hours a day, seven days a week. Officials say they hope to be breaking ground on the new casino by the end of the year.

Bally's said no explosives or wrecking balls will be used during the demolition.

"We're really excited to put something here that benefits Chicago as a whole," Bally's chairman Soo Kim said.

Bally's expects to open its permanent $1.7 billion casino, 500-room hotel, 3,000-seat theatre and 10 restaurants in fall of 2026.

"Instead of throwing paper, we're going to welcome guests, millions and millions of guests," Kim said.

The project hasn't been without controversy.

A temporary casino opened nearly a year ago inside River North's Medinah temple has underperformed. That's led to questions regarding whether the deal, inked two years ago by former Chicago Mayor Lori Lightfoot's administration with the stated purpose of funding Chicago's Police and Fire pensions, is a good one.

"If we don't do this, then what? So, we have to hope that it's going to do well, and whatever they get it's better than nothing," 27th Ward Alderman Walter Burnett said.

Still, as of two months ago, even Mayor Brandon Johnson was expressing doubts.

That came as construction plans had to be altered, when it was discovered the hotel tower's planned location would damage existing infrastructure.

And funding for the project did not even come through until last month.

"They gave us money up front. We got their money already, some of it. But, at the same time, just this development alone. All of the construction work that is going to go on alone, it's billions of dollars that's going to be spent in the community," Burnett said.

Bally's recently revealed new renderings of the planned casino, after saying it secured funding for the complex. The site plan includes a 34-story hotel tower, pending approval from the Chicago Department of Planning and Development.

The company also accepted a buyout offer from its largest shareholder for more than $4.5 billion late last month.

Standard General, a hedge fund led by Kim, will buy the remaining shares of the company, which will keep it publicly traded.

The Illinois Gaming Board said they are aware of the buyout and are reviewing it.

Bally's told the Chicago Tribune the Chicago casino plans remain unchanged.