Bally’s Targeting August to Bring $250M Chicago IPO to Market
Bally's previously contentious $250 million Chicago IPO is getting closer to happening and might be ready to go as early as next month.
That is if the selling of shares is approved by the Securities and Exchange Commission (SEC). The regional casino operator provided investors with an update earlier this week regarding the Windy City investment opportunity, stating that it has submitted a Form S-1 filing to the commission.
"With this filing completed, assuming no additional comments from the SEC, Bally’s Chicago is currently targeting to close both the IPO and the second tranche of the concurrent private placement in early August 2025,” Bally’s wrote in a letter to prospective investors.
The latest regulatory filing contained that letter. In order to fund its $1.7 billion integrated resort in the third-largest US city, the gaming business based in Rhode Island is trying to raise $250 million. The permanent casino hotel is expected to open in 2026, making it the operator's most costly project. Currently, Bally's operates a makeshift gambling establishment in the Medinah Temple area. The gaming company's Chicago IPO is being led by Loop Capital.
Bally's Resolving the Chicago IPO Scandal
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. Locals showed a strong interest in the original idea, but the qualifier based on race and gender also caused division.
Legal issues followed, and there was conjecture that the SEC purposefully postponed earlier filings for the transaction. Bally's Chicago initial public offering (IPO) plan was postponed in March when the Securities and Exchange Commission (SEC) failed to pronounce it effective, raising concerns that the plan would fall victim to President Trump's anti-diversity, equality, and inclusion (DEI) campaign.
Two lawsuits, one from the Liberty Justice Center, were settled between the gambling company and Illinois authorities. The complaints were filed by irate potential investors who alleged that the IPO strategy, which was based on race and gender, was discriminatory.
In the end, Bally's dropped those restrictions, allowing a wider range of potential investors to participate in the Chicago IPO. That action could significantly speed up the share sale and is probably going to reduce any potential legal exposure.
An Update on Bally's Chicago Funding
In a $2 billion deal announced last year, Bally's Kansas City and Shreveport real estate, together with the property assets of the Chicago venue, were purchased by Gaming and Leisure Properties (NASDAQ: GLPI). In terms of giving the gaming corporation the money it needed to finish the Chicago project, the deal was crucial.
During Thursday's second-quarter earnings conference call, the landlord discussed the real estate investment trust's (REIT) capital commitment to Bally's. According to GLPI, the Windy City casino hotel project's budget has not changed.
CFO Desiree Burke stated on the conference call that the REIT is pleased with the amount of money going to Chicago. In response to a query from analysts, COO and President Brandon Moore stated that Bally's Chicago is included in the operator's "unrestricted group" and that the financing is not yet backed by a parent guarantee. However, he also mentioned that a recent regulatory filing from Bally's shows that there are steps "to adding that Chicago property to the parent guarantee and the restricted group."
