Bally’s Chicago has filed an amended registration with the Securities and Exchange Commission (SEC) for its delayed initial public offering (IPO), expanding access to the investment opportunity beyond its previous focus on women and minority investors.
The casino executives are optimistic about the IPO’s approval despite facing two federal lawsuits that allege discrimination against white men.
Chris Jewett, Bally’s senior vice president of corporate development, stated, “Thousands of qualified minorities have already applied. We’re going to meet the goal.”
In January, Bally’s Chicago initially launched a $250 million IPO exclusively targeted at women and minorities, aiming to satisfy a commitment to the city and raise funds for a significant $1.7 billion entertainment complex in River West.
Loop Capital Markets, based in Chicago, is serving as the lead placement agent for the IPO. The offering was initially restricted solely to individuals defined as “socially disadvantaged” by city guidelines, including Black, Asian American, and Hispanic investors.
Jim Reynolds, CEO of Loop Capital Markets, emphasized the strong interest from potential investors, noting, “As the lead placement agent for the Bally’s Chicago IPO, we’ve seen interest from thousands of people who appreciate having access to this unique investment opportunity in a one-of-a-kind casino and resort project in the city of Chicago.”
However, the IPO saw disruptions when the SEC did not approve the registration before the prospectus financials lapsed in February, effectively halting the process.
At that time, Bally’s Chairman Soo Kim expressed uncertainty about the stall, while the SEC had no comments on the individual company filings.
One of the most substantial updates in the amended registration is the removal of minority investor qualifications. Bally’s submitted revised financials and a new registration statement on April 22, now offering 10,000 Class A shares without references to minority investor restrictions.
The amended IPO introduces new provisions for preferential allocations of Class A interests to residents of Chicago and Illinois.
In regard to the changes, Kim commented, “We take pride in having attracted a substantial amount of interest in ownership from women and minority groups. To make this investment available to even more Chicagoans who make this city so great we are extending our investment opportunities, with a preference for residents of Chicago and other parts of Illinois.”
Bally’s was announced as the selected contractor to build the Chicago casino in May 2022, outcompeting other contenders like Rivers Casino and Hard Rock with a proposal featuring an exhibition hall, a 500-room hotel, a 3,000-seat theater, ten restaurants, and 4,000 gaming positions.
The city mandated that the final proposal included an equity component of at least 25% investment from women and minority investors as part of the winning bid.
The IPO comprised 10,000 Class A shares with a price range varying from $250 to $25,000, along with loan options from Bally’s Chicago to facilitate participation from “underrepresented communities.”
Initially accepting applications through January 31, the IPO was expected to close shortly afterward, on February 7.
An earlier private placement of shares saw 1,185 Class A shares sold to qualified minority investors and 2,141 Class A shares allocated to the Bally’s Chicago holding entity, as per the amended filing.
Jewett states that the amended IPO is still anticipated to meet the equity goals for minority representation, despite the broadened access to non-minority investors.
He commented, “We hope to close the IPO as soon as possible, pending SEC approval.”
A spokesperson for Mayor Brandon Johnson emphasized that the city expects Bally’s Chicago to adhere to the host agreement, which includes commitments to both the construction of the permanent casino and the 25% participation by minority equity investors.
“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,” the spokesperson relayed in a statement.
Ongoing legal challenges stemming from lawsuits filed in late January by the American Alliance for Equal Rights and Wilmette resident Mark Glennon further complicate matters. These lawsuits allege that the IPO changed investment opportunities in a discriminatory manner against white men.
Although the minority requirement has now been lifted, Bally’s Chicago indicated in its amended IPO registration that it anticipates incurring considerable expenses to address these lawsuits, along with the possibility of facing additional legal actions.
In the meantime, Bally’s, which has been running a temporary casino at Medinah Temple since September 2023, continues to make headway toward its permanent facility being built on the former Chicago Tribune printing plant site.
After experiencing delays in demolition work, Bally’s began installing foundational caissons in February. The casino remains scheduled to open in September 2026.
Jewett provided an update, stating, “The caissons are almost done. They’re going to start pouring concrete in a couple weeks.”
This milestone represents a significant step forward for Bally’s Chicago as it navigates an evolving landscape filled with legal, regulatory, and logistical challenges.
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