Bally’s Chicago opens casino IPO to wider pool of investors after legal, regulatory setbacks

Bally’s Chicago has amended its initial public offering to remove requirements that limited participation to women and minority investors, broadening access as the company seeks to jumpstart a stalled effort to raise funds for its planned $1.7 billion casino in River West.

The revised IPO registration, submitted to the U.S. Securities and Exchange Commission (SEC) on April 22, eliminates all language restricting eligibility to “socially disadvantaged” groups and instead includes language giving preferential allocation to residents of Chicago and Illinois.

“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,” said Bally’s Chairman Soo Kim in a statement.

Bally’s is offering 10,000 Class A shares in the IPO, priced from $250 to $25,000. The original offering launched in January was intended to fulfill the city’s mandate for 25% equity participation from women and minorities, but it was never declared effective by the SEC and expired in February.

The revised filing comes as Bally’s faces two ongoing federal lawsuits that allege the original IPO discriminated against white male investors. The company said it expects to incur “substantial costs” defending the litigation and may face additional legal challenges.

Despite opening the offering to a broader investor base, Bally’s executives expressed confidence they will still meet the city's minority investment target.

“Thousands of qualified minorities have already applied. We’re going to meet the goal,” said Chris Jewett, Bally’s senior vice president of corporate development.

In a private placement, Bally’s sold 1,185 Class A shares to minority investors and 2,141 shares to its holding entity, according to the amended filing.

Loop Capital Markets, the IPO’s lead placement agent, said the initial offering generated significant interest.

“We’ve seen interest from thousands of people who appreciate having access to this unique investment opportunity,” said Jim Reynolds, CEO of Loop Capital.

Bally’s was selected by the city in 2022 to develop the permanent casino, beating out rivals Rivers Casino and Hard Rock. The River West project is set to include an exhibition hall, 500-room hotel, 3,000-seat theater, 10 restaurants and 4,000 gaming positions.

After delays, Bally’s began foundational construction work in February and aims to open the facility in September 2026.

“The caissons are almost done. They’re going to start pouring concrete in a couple weeks,” Jewett said.

The City of Chicago reiterated that Bally’s must meet the conditions of its host agreement, including completing the casino and maintaining the 25% minority ownership threshold.

“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,” a city spokesperson said.

Bally’s continues to operate a temporary casino at the Medinah Temple while construction on the permanent facility moves forward. The company said it hopes to close the IPO “as soon as possible,” pending regulatory approval.