A wider, and whiter, pool of potential investors could get in on the action with shares of Chicago’s future Bally’s casino under a revised initial public offering from the gambling company.
Bally’s reopened its casino IPO last week to all investors “with a preference for residents of Chicago and other parts of Illinois” — not just those from minority backgrounds, as the company had specified in its first offering.
Facing lawsuits from spurned white male investors, a stalled response from the U.S. Securities and Exchange Commission and the tide of anti-diversity, equity and inclusion efforts from President Donald Trump’s administration, Bally’s executives say the terms of the $250 million IPO have changed, but their commitment to Chicago has not.
“We take pride in having attracted a substantial amount of interest in ownership from women and minority groups,” Bally’s chairman Soo Kim said in a statement. “We remain steadfast to our commitment to the City of Chicago and the development of a thriving community.”
A key provision of the host community agreement Bally’s signed with former Mayor Lori Lightfoot’s office when it was awarded the coveted casino license in 2022 stipulates that 25% of the permanent casino must “be owned by minority individuals and minority-owned and controlled businesses.”
To meet that requirement, Bally’s, in its first IPO go-round in December, reserved shares exclusively for women, Black investors and people 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.”
That prompted federal lawsuits from several white men who argued they were “excluded from the table solely based on immutable characteristics.”
Bally’s took deposits from some 1,500 investors but started refunding them in late February because the SEC didn’t sign off on the offering. Officials from the agency declined to comment.
In their renewed push for SEC approval, Bally’s is banking on meeting the 25% minority ownership requirement that they’re contractually bound to, without specifying those requirements in the IPO. It’s still pending federal approval.
In a statement, Mayor Brandon Johnson’s office said “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 suits against Bally’s are still pending. “We expect to incur substantial costs defending these lawsuits, and if any person were to bring such a lawsuit against us in the future, we could incur additional substantial costs defending against any additional lawsuits,” the company advises in its updated prospectus.
They’re offering interests ranging from $250 to $25,000 to help fund construction of the $1.34 billion permanent casino at 777 W. Chicago Avenue, slated to open in September 2026.
In the meantime, the company is operating a temporary casino at the historic Medinah Temple, 600 N. Wabash Ave. Tax revenue is earmarked for Chicago police and fire pensions, but early returns have fallen well short of city expectations.
Bally’s casino shares “are highly risky and speculative” and “should be considered only by persons who can afford the loss of their entire investment,” company leaders wrote.