Bally’s Wraps Up Chicago IPO, 1,800 Investors Participated
Bally's announced the closing of its initial public offering (IPO) in Chicago, the first of potentially several placements intended to raise money for the operator's $1.7 billion casino hotel in the city.
Nearly 1,600 of the 1,800 investors that took part in the offering were from Illinois, according to the regional casino operator based in Rhode Island. The gaming company's host city agreement included an initial public offering (IPO) that was accessible to unaccredited market participants.
"Nearly 1,800 unique shareholders including 1,007 Chicagoans and 1,573 Illinois-based shareholders are now partners of the project, going a long way to fulfilling our commitment to the City of Chicago,” said the company in a press release.
Although some reports indicate the amount was reduced to $190 million, Bally's stated in July that it hoped to complete the Chicago IPO this month and that its target was $250 million. The amount raised was not disclosed by the company. The transaction was led by the Chicago-based investment bank Loop Capital.
Bally's IPO in Chicago Was Previously Controversial
Bally's sought to sell a 25% share in the first gaming establishment within the Chicago city limits as part of the host city agreement (HCA), but the offering was initially limited to women and minorities. Although that scheme attracted investment interest, it also faced legal difficulties due to its discriminatory nature.
Bally's forewarned of lengthy legal disputes and expenses, but in the end, it sided with Illinois regulators to resolve two lawsuits—one from the Liberty Justice Center—brought by prospective investors who said they were denied the opportunity to purchase shares in the Chicago casino due to their race as white men.
The Chicago sale was delayed as a result of those problems. Bally's Chicago initial public offering (IPO) plan was postponed in March due to the Securities and Exchange Commission's (SEC) failure to pronounce it valid. The IPO was later made possible by the corporation opening it to a larger pool of investors. The racial and gender distribution of those who purchased shares in the now-closed offering was not disclosed.
Since 2023, Bally's has run a temporary gaming establishment in the Medinah Temple district of Chicago. The permanent integrated resort is expected to open in the River West neighborhood the following year.
Additional Share Sales May Be Coming
Although no date for such sales was given, Bally's may eventually sell more ownership holdings in the Chicago casino.
"Bally’s delivers on an innovative way to do public-private partnerships,” according to the press release. “This is the first of what Bally’s Chicago, Inc. intends to be a few rounds of placements.”
If the firm is granted a license to build a casino on a Bronx land that is now used as a golf course, it has promised to carry out a similar share sale in New York.
