Date: December 31, 2024, 02:16h.
Last updated on: December 31, 2024, 02:16h.
Bally’s Corporation, based in Rhode Island, is offering a 25% equity stake in its $1.7 billion integrated resort project in Chicago.
Operating as Bally’s Chicago, Inc. in Illinois, the gaming company announced the start of an IPO to sell 25% of the company to individual investors who are women or minorities.
Qualifying minorities include Black, Indian, Asian, Hispanic, Arab, or other groups recognized by the City of Chicago as socially disadvantaged due to racial or ethnic prejudice, as explained in the Bally’s Chicago presentation.
Investment stakes in the offering range from $250 to $25K, aiming to raise $250 million. Bally’s is currently demolishing the Freedom Center, the former printing facility of the Chicago-Tribune and Chicago Sun-Times, which it purchased in 2022 for $200 million.
Minority Sale as per Host Agreement
As part of the Host Community Agreement (HCA) between Bally’s Chicago and the city, the company agreed to have 25% of the project equity owned by minorities and women.
The HCA terms state that “25% of the project equity will be owned by minority individuals and minority-owned and controlled businesses,” and Bally’s will make efforts to find qualified minority investors.
Bally’s may pay dividends but is not obligated to, with quarterly distributions planned. Potential investors are cautioned about the high risk involved in investing in the Chicago casino.
Chicago plans to utilize tax benefits from Bally’s Chicago to support the pension program for first responders, expecting around $200 million annually from the casino once operational.
The opening of the Bally’s Chicago resort is targeted for September 2026, with temporary operations ongoing at the Medinah Temple for now.
Diverse Workforce
Apart from the minority/female ownership stake commitment, Bally’s Chicago, under Soo Kim’s Standard General, promises to hire women, minorities, and underrepresented groups at the property.
The HCA outlines goals for placing minorities in 60% of jobs, with at least 45% held by women. The casino also aims for a 10% workforce inclusion of veterans and disabled individuals.
Bally’s plans to collaborate with non-profits and community organizations in Chicago to achieve these employment goals, as detailed in the HCA.