–Bally’s Chicago Casino IPO Closes, Bringing 1,000 Chicagoans into Ownership
CHICAGO, IL – June 13, 2024 – Bally’s Corporation announced the prosperous completion of its initial public offering (IPO) of Chicago casino shares, bringing approximately 1,800 investors, including 1,007 Chicago residents, into ownership of the $1.7 billion casino and entertainment complex planned for River West. The IPO raised roughly $250 million, registered with the U.S. Securities and Exchange Commission.
The offering initially aimed to prioritize ownership for women and people of colour, stemming from the host community agreement signed with former Mayor Lori Lightfoot. Though, following lawsuits from a conservative activist group representing white men, Bally’s expanded the offering to all backgrounds, with a preference for Illinois residents. A federal lawsuit was settled in June 2024.
proceeds from the IPO will contribute to the financing of the casino, which is slated to open in September 2026. Bally’s previously secured a $940 million financing deal to address an $800 million funding gap.
Despite the financial progress, the project has faced challenges, including site plan revisions due to potential damage to city water mains, a demolition incident that sent debris into the Chicago River, and a temporary construction halt following concerns about a waste hauler with ties to organized crime.
early revenue from the temporary casino at 777 W. Chicago Ave. has been lower than anticipated,generating $27.4 million in revenue for the city. The casino is expected to contribute significantly to police and firefighter pensions, as envisioned by the 2019 gaming expansion law.
Bally’s cautions that the shares are “highly risky and speculative” and suitable only for investors who can afford to lose their entire investment. The company intends to conduct further rounds of placements.
