Bally’s to sell Chicago casino ownership stakes to women, minority investors

Chicagoans from diverse backgrounds could soon bet on Bally’s with stock in the city’s forthcoming megacasino.

Bally’s on Monday announced its proposed terms for offering a collective 25% equity stake in its permanent River West casino, limited to prospective investors who are women or people of color, as required under the company’s host community agreement with the city.

The company plans to offer investment stakes of $250 to $25,000 to raise a total of $250 million toward funding construction of the $1.34 billion casino and resort at Chicago Avenue and Halsted Street, slated to open in September 2026.

Demolition started this year at the former Chicago Tribune printing plant after Bally’s lined up $940 million in private financing to bridge an $800 million funding gap on what’s expected to become the Rhode Island-based corporation’s flagship property.

Terms of the initial public offering are still awaiting final approval from the U.S. Securities and Exchange Commission.

Individual investors “must be a woman or a minority,” according to an investor presentation from Bally’s, while other investing entities “must be controlled by women or minorities.”

That includes investors who are Black, American Indian, Asian American, Hispanic, Arab American or who come 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,” according to the presentation.

The minority ownership stake was a key commitment from Bally’s that helped it land former Mayor Lori Lightfoot’s nod over more experienced casino operators to become the city’s choice for the long-coveted gaming license in 2022.

The permanent casino is projected to eventually rake in about $1 billion per year, with the city taking an estimated cut of $200 million for its underfunded police and firefighter pensions.

But early returns from Bally’s temporary casino at 600 N. Wabash Ave. have fallen short of projections set by Lightfoot’s office, prompting Mayor Brandon Johnson’s budget team to lower its expectations for 2025.

Minority casino stakeholders will get votes in company matters, and Bally’s Chicago Inc., “will be permitted, but not required, to pay dividends,” according to a preliminary prospectus in which the company said “we intend … to make distributions on a quarterly basis.”

But with hefty construction costs, any potential return on investment likely wouldn’t be seen until “approximately three to five years after our permanent resort and casino begins operations,” the preliminary prospectus said.

The company also cautioned that the shares “are highly risky and speculative. Investing in our Class A Interests should be considered only by persons who can afford the loss of their entire investment.”

Bally’s touted it to investors as a way to “strengthen their connection with the City of Chicago, have a vested interest in the project’s success [and support police & first responders’ pensions.”

The public offering is expected to last through early February, pending federal approval. More information is available at ballyschicagoinvest.com.