Bally’s Corp. Seeking Investors for Chicago Casino Resort, White Men Need Not Apply
Bally’s Corporation, located in Rhode Island, is presenting a 25% equity share in its $1.7 billion integrated resort project in Chicago.
Operating in Illinois under the name Bally’s Chicago, Inc., the gaming firm announced on Monday the launch of an initial public offering to sell 25% of the company to investors. The IPO is limited to individual investors who are either female or from a minority group. Investing organizations “should be directed by women or minorities.”
Eligible minorities encompass investors who identify as Black, Indian, Asian, Hispanic, Arab, or any other group "recognized by the City of Chicago as having been socially disadvantaged due to experiencing racial or ethnic discrimination or cultural bias in American society," as clarified in the Bally’s Chicago presentation.
The proposal encompasses investment shares between $250 and $25K to secure $250 million. Bally's is in the process of demolishing the Freedom Center, which used to be the printing site for the Chicago-Tribune and Chicago Sun-Times. In November 2022, Bally’s acquired the facility located at Chicago Avenue and Halsted Street in the River West area of the city for $200 million.
Sale of Minority Stake as Part of Host Agreement
When Bally’s secured support from then-Mayor Lori Lightfoot (D) and the Chicago City Council, the regional gaming powerhouse vowed a range of commitments and advantages to the Windy City. A key aspect of the Host Community Agreement (HCA) between Bally’s Chicago and the city is that the company will incorporate a substantial minority and women ownership stake.
"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 states it “will be allowed but not obligated” to pay dividends, although the firm plans to distribute quarterly payments. Bally’s is cautioning prospective investors that putting money into the Chicago casino is “extremely risky and speculative” and that only individuals who can “bear the loss of their full investment” should get involved.
The City of Chicago intends to utilize the tax revenue generated from the permanent Bally’s Chicago venue to support its pension program for first responders. Chicago officials anticipate that the casino will generate approximately $200 million each year once it is operational.
Bally's is aiming for a September 2026 launch for the Windy City resort. In the interim, Bally’s is still running a temporary gaming venue within the Medinah Temple at 600 N. Wabash Ave.
Underrepresented Labor Force
Along with committing to a 25% ownership stake for minorities and women in Bally’s Chicago, Soo Kim’s Standard General has vowed to employ women, minorities, and underrepresented communities at the permanent site.
The Bally's Chicago HCA states that the resort aims to employ minorities in six out of ten positions. At least 45% of the roles must be occupied by women. The casino will likewise strive to guarantee that 10% of the workforce consists of veterans and individuals with disabilities.
“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.
