Bally’s Looking To Raise $195 Million With IPO For Chicago Casino

If at first you don’t raise, try, try again.

Bally’s, which was rebuffed by the Securities and Exchange Commission (SEC) in an initial public offering (IPO) last year designed to raise money to meet a 25% minority investment goal for its $1.7 billion downtown Chicago casino, released details of a new IPO on Tuesday.

The new offering is seeking to raise $195.1 million with four share classes ranging in price from $250 to $25,000. That is slightly less than the first IPO — of which details were released in December 2023 — which targeted $250 million and had a focus on Illinois, New York, Texas, and Florida residents who qualified for minority status.

Those conditions led to multiple lawsuits, including one filed by two white Texas residents in the U.S. District Court for the Northern District of Illinois claiming the IPO was discriminatory and unconstitutional. Additionally, the SEC did not respond and failed to declare a registration by late February 2024. That resulted in Bally’s having to end the offering and return deposits to those who signed up, leading to a redraft for this current version.

Bally’s has been operating a temporary casino at Medinah Temple in the River North section of the city since September 2023, and state law mandates the permanent venue being built in nearby River West open by late September 2026. The temporary casino has generated $29.1 million in adjusted gross revenue through the first three months of 2025, with the city collecting nearly $3 million in tax receipts.

So what is different about this IPO?

According to the prospectus, the most notable change is a broadening of the field of potential investors. Bally’s notes, “We currently intend to provide preferential allocations of Class A Interests to City of Chicago residents and Illinois residents during this offering.”

The IPO is being offered to “non-accredited” investors, who are defined as having a net worth of less than $1 million and an annual income of less than $200,000. Similar to the first IPO, this offering is again exclusive to Illinois, Florida, New York, and Texas.

There are 10,000 shares available, with the majority (7,500) coming at the Class A-4 Interest at $25,000 per share. A total of 500 Class A-1 shares at $250 are available and 1,000 Class A-2 and A-3 shares are available with purchase prices of $2,500 and $5,000, respectively. Each share purchased is then matched by a subordinated loan that equals $25,000 in aggregate. Therefore, a Class A-1 share carries a subordinate loan of $24,750; Class A-2 a loan of $22,500; and Class A-3 a loan of $20,000.

“We take pride in having attracted a substantial amount of interest in ownership from
women and minority groups. 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. We remain steadfast to our commitment to the City of Chicago and the development of a thriving community,” said Bally’s Corporation Chairman Soo Kim in a statement.

“As the lead placement agent for the Bally’s Chicago IPO, we’ve seen interest from
thousands of people who appreciate having access to this unique investment
opportunity in a one-of-a-kind casino and resort project in the city of Chicago,” added
CEO of Loop Capital Markets Jim Reynolds.

Other investment opportunities remain

Investors who surpass those thresholds continue to have the opportunity for investment through Bally’s sale of $195 million in private shares announced in March.

That sale has so far raised $13.2 million according to the prospectus, with $11.5 million coming via the sale of 461 Class A-4 interests at $25,000 per share.

The prospectus noted the risk involved with purchasing these shares and conceded, “There is no trading market for our Class A Interests and, due to certain transferability restrictions described below and elsewhere in this prospectus, an active market for our Class A Interests will not likely develop in the future.”

In other Illinois casino news …

Fairmount Park became the 17th casino in Illinois after Accel Entertainment had a soft opening Friday. The opening is a key step toward the horse racing track progressing to a full racino, which became legal when Gov. JB Pritzker signed a gaming expansion bill in 2019.

Friday’s opening came ahead of Fairmount’s 100th season — which began Tuesday — and with lead time ahead of next month’s Kentucky Derby. That was a target date Accel — which purchased Fairmount Holdings for $35 million last July and planned to invest $90 million more into renovations — cited in its initial plans to the Illinois Gaming Board last October.

The 12,000-square foot gaming space is augmented by upgrades to the track’s infrastructure that includes three new concession stands. Fairmount Park also plans to open a full-service restaurant and bar in June.

“We are thrilled to open our casino and showcase our park improvements, highlighting the hard work and dedication of our employees and partners,” said Vince Gabbert, senior VP of U.S. Gaming and general manager at Fairmount Park Casino & Racing.

“I would like to thank the Illinois Racing Board, the Illinois Gaming Board, the city of Collinsville, and our local elected officials for their guidance and partnership throughout our development of this historic property,” added Andy Rubenstein, CEO of Accel. “We would not have been able to complete this casino and park improvements in less than five months without their support.

“I would also like to thank Vince and his outstanding team of professionals for their dedication to getting us here. I am proud and excited about the future of Fairmount as a premier entertainment destination for the Metro East Area.”