April 29, 2025
(Chicago Sun-Times)
–
A wider, and whiter, pool of potential investors could get in on the action with shares of Chicago’s future Bally’s casino under a revised initial public offering from the gambling company.Bally’s reopened its casino IPO last week to all investors “with a preference for residents of
Chicago
and other parts of Illinois” — not just those from minority backgrounds, as the company had specified in its first offering.Facing lawsuits from spurned white male investors, a stalled response from the
U.S. Securities and Exchange Commission
and the tide of anti-diversity, equity and inclusion efforts from President Donald Trump’s administration, Bally’s executives say the terms of the
$250 million
IPO have changed, but their commitment to
Chicago
has not.“We take pride in having attracted a substantial amount of interest in ownership from women and minority groups,” Bally’s chairman
Soo Kim
said in a statement. “We remain steadfast to our commitment to the
City of Chicago
and the development of a thriving community.”A key provision of the host community agreement Bally’s signed with former Mayor
Lori Lightfoot’s
office when it was awarded the coveted casino license in 2022 stipulates that 25% of the permanent casino must “be owned by minority individuals and minority-owned and controlled businesses.”To meet that requirement, Bally’s, in its first IPO go-round in December, reserved shares exclusively for women, Black investors and people from other groups “found by the
City of Chicago
to be socially disadvantaged by having suffered racial or ethnic prejudice or cultural bias within American society.”That prompted federal from several white men who argued they were “excluded from the table solely based on immutable characteristics.”Bally’s took deposits from some 1,500 investors but started refunding them in late February because the
SEC
didn’t sign off on the offering. Officials from the agency declined to comment.In their renewed push for
SEC
approval, Bally’s is banking on meeting the 25% minority ownership requirement that they’re contractually bound to, without specifying those requirements in the IPO. It’s still pending federal approval.In a statement, Mayor
Brandon Johnson’s
office said “the City values Bally’s commitment to the
Chicago Casino
project and we look forward to continued progress on the permanent casino in accordance with the requirements of the host community agreement.”
Related
Bally’s gets credit downgrade for ‘execution risk’ on
Chicago
casino
The suits against Bally’s are still pending. “We expect to incur substantial costs defending these lawsuits, and if any person were to bring such a lawsuit against us in the future, we could incur additional substantial costs defending against any additional lawsuits,” the company advises in its updated prospectus.They’re offering interests ranging from
$250
to
$25,000
to help fund construction of the
$1.34 billion
permanent casino at
777 W. Chicago Avenue
, slated to open in September 2026.In the meantime, the company is operating a temporary casino at the historic
Medinah Temple
,
600 N. Wabash Ave.
Tax revenue is earmarked for
Chicago
police and fire pensions, but early returns have fallen well short of city expectations.Bally’s casino shares “are highly risky and speculative” and “should be considered only by persons who can afford the loss of their entire investment,” company leaders wrote.
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