Bally's wins local support for Bronx casino, but Trump connection adds complications

Bally’s (NYSE:BALY) proposal to build a $4B gaming and hospitality complex in The Bronx has been approved by a local community group, clearing the way for the bid to proceed to the New York Gaming Facility.

The Bally’s Casino at Ferry Point will be the largest private development in the borough with a 500-room hotel and 2,000-seat entertainment center, potentially employing 15,000 construction workers.

The proposal is vying for one of three casino spots in New York City, moving onto the state level along with the MGM Empire City proposal. Caesars Entertainment’s (CZR) plan for a Times Square casino was rejected by the local community advisory committee amid fears of increased congestion and crime and concerns about changing the character of the theater district.

Bally’s (NYSE:BALY) proposal for a 500,000-square-foot casino adjacent to its Ferry Point golf course could encounter opposition from New York Democrats who object to its agreement with the Trump Organization. The company purchased the lease from the former Trump Links in 2023, rebranding it "Bally’s Golf Links at Ferry Point," and committed to an additional $115M payment to the Trump Organization contingent on a casino conversion.

Further complicating matters, the consultant for Bally’s Corporation, Steve Witkoff, is also President Trump’s special envoy to the Middle East. According to Politico, Witkoff reportedly endorsed New York Mayor Eric Adams as ambassador to Saudi Arabia.

Politico notes that Adams’ involvement in the Bally’s casino proposal included his veto of a City Council decision to exclude the project from the licensing process, an uncommon action given that New York mayors rarely override the legislature.

Despite potential hurdles in achieving approval at the state level, the community vote has elevated Bally (NYSE:BALY) shares by 7% on Monday to a 3-month high.

Dear Readers: We recognize that politics often intersect with the financial news of the day, so we invite you to click here to join the separate political discussion.