Bally’s Corp. Seeking Investors for Chicago Casino Resort, White Men Need Not Apply

Posted on: December 31, 2024, 02:16h. 

Last updated on: December 31, 2024, 02:16h.

Devin O'Connor Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

Rhode Island-based Bally’s Corporation is offering a 25% equity stake in its $1.7 billion integrated resort development in Chicago.

Bally's Chicago casino stock
A rendering of Bally’s Chicago, a $1.34 billion integrated resort casino. Bally’s is offering stock in the development to minorities and women. (Image: Bally’s Corp.)

Operating in Illinois as Bally’s Chicago, Inc., the gaming company on Monday announced the commencement of an initial public offering to sell a quarter of the company to investors. The IPO is restricted to individual investors who are female or a minority. Investing entities “must be controlled by women or minorities.”

Qualifying minorities include investors who are Black, Indian, Asian, Hispanic, Arab, or another group “found by the City of Chicago to be socially disadvantaged from having suffered racial or ethnic prejudice or cultural bias within American society,” the Bally’s Chicago presentation explained.

The offering includes investment stakes ranging from $250 to $25K to raise $250 million. Bally’s is amid demolition of the Freedom Center, the former printing facility of the Chicago-Tribune and Chicago Sun-Times. Bally’s purchased the complex at Chicago Avenue and Halsted Street in the city’s River West neighborhood in November 2022 for $200 million.

Minority Sale Part of Host Agreement

When Bally’s gained the backing of then-Mayor Lori Lightfoot (D) and the Chicago City Council, the regional gaming giant pledged a slew of promises and benefits to the Windy City. A major provision of the project’s Host Community Agreement (HCA) between Bally’s Chicago and the city is that the company would include a significant minority and women ownership position.

Developer commits that 25% of the project equity will be owned by minority individuals and minority-owned and controlled businesses,” the HCA terms read. “[The] developer shall provide commercially reasonable efforts to locate qualified minority individuals or minority-owned and controlled businesses who wish to buy an interest.”

Bally’s says it “will be permitted but not required” to pay dividends, though the company intends to make quarterly distributions. Bally’s is warning potential investors that investing in the Chicago casino is “highly risky and speculative” and only those who can “afford the loss of their entire investment” should participate. 

The City of Chicago plans to use its tax benefit from the permanent Bally’s Chicago destination to help fund its pension program for first responders. Chicago officials expect to receive about $200 million annually from the casino once it’s up and running.

Bally’s is targeting a September 2026 opening for the Windy City resort. In the meantime, Bally’s continues to operate a temporary gaming facility inside the Medinah Temple at 600 N. Wabash Ave.

Minority Workforce

In addition to pledging a 25% minority/female ownership stake in Bally’s Chicago, the company controlled by Soo Kim’s Standard General has promised to hire women, minorities, and underrepresented groups at the permanent property.

The Bally’s Chicago HCA details that the resort will strive to place minorities in six in 10 jobs. A minimum of 45% of the positions should be held by women. The casino will also work to ensure that 10% of the labor force is made up of veterans and disabled persons.

“Bally’s plans to partner with well-respected workforce development non-profits and community-based organizations in Chicago, such as Skills for Chicagoland’s Future, Women Employed, Washington Heights Workforce Center, and Chicago Urban League (as well as others) to achieve the stated employment goals,” the HCA reads.