Bally’s Corporation Eyes Equity for NYC’s Bronx Casino

Bally's Corporation, known for its ambitious expansion plans in the gaming and entertainment sector, has recently floated the idea of offering as much as 10% of the equity in its proposed Bronx casino to local residents. The announcement, made by Bally's Chairman Soo Kim, echoes the company’s attempt to engage local communities in its plans, much like it did with a similar initiative in Chicago. However, the legal and regulatory hurdles Bally’s faced in Illinois suggest that its latest gambit may encounter challenges before reaching fruition.

A New Strategy to Win Over the Bronx Community?

Bally's proposal comes as the company continues to pursue its vision for a casino, hotel, and multi-use public space on 17 acres of prime real estate in the Bronx. The land, which is currently home to the Trump Golf Links but now bears Bally’s name, offers a striking location for the company’s ambitions. The casino would sit at the heart of a broader development plan aimed at revitalizing the area and potentially creating new jobs and economic opportunities for local residents.

Kim’s suggestion to offer up to 10% of the casino’s equity to Bronx residents is a bold attempt to create local buy-in. The shares would reportedly be available at an affordable starting price of $250, a move that could make the investment accessible to a broad swath of the community. However, while the proposal may sound appealing on the surface, it is unlikely to be the deciding factor in whether Bally’s secures the necessary approvals for the casino project.

For Bally's to move forward with its Bronx casino, it must navigate a complex landscape of regulatory and political obstacles. Chief among them is the need for approval from multiple local and state agencies, including the New York State Gaming Facility Location Board, the New York State Gaming Commission, and several governmental bodies at the city and state level. The key hurdle is securing a change in land designation from the New York State Legislature, which must authorize the alienation of the Ferry Point property for non-recreational use.

Despite these challenges, Kim’s proposal to offer shares to local residents may be a strategic move to curry favor with local decision-makers. By involving the community financially, Bally’s could be hoping to bolster its position with influential stakeholders who may be swayed by the prospect of direct financial benefit from the casino’s success.

 

The Legal Quagmire in Chicago

Bally's has attempted a similar community investment model in Chicago, where it won the bid to build the city's first casino. Under the terms of the agreement, 25% of the equity in the casino was to be allocated to minority or minority-owned businesses. In line with this, Bally’s offered shares to women and people identifying as belonging to ethnic or racial minorities. However, this initiative has been met with legal challenges, including a lawsuit that sought to block the restriction of share ownership to specific groups.

The controversy in Chicago has drawn the attention of the U.S. Securities and Exchange Commission (SEC), which has yet to approve the public listing of the shares. Bally’s has vowed to work with the SEC to resolve the issue, but the legal complexities underscore the difficulties involved in such community-oriented equity models. Additionally, the Trump administration’s rollback of diversity and inclusion policies has raised questions about the future of such initiatives, especially in the context of large corporate investments.

While the company has not made similar commitments regarding diversity in ownership for the Bronx casino, the Chicago experience highlights the challenges Bally's may face in trying to navigate complex legal frameworks while also keeping local communities engaged. Without clear guidelines and approval from relevant authorities, it remains uncertain whether Bally's will be able to successfully execute its Bronx equity proposal.

 

A Roadmap for the Future?

Despite the uncertainty surrounding the legal and regulatory landscape in both Chicago and New York, Bally’s remains optimistic about its ability to deliver on its ambitious projects. If the Bronx casino plan is approved, local residents may indeed find themselves with the opportunity to own a stake in the venture, further solidifying the company's commitment to community involvement.

However, with multiple moving parts—ranging from land designation issues to the need for various licenses and approvals—the future of the Bronx casino remains uncertain. Even if the company clears these hurdles, its experience in Chicago serves as a cautionary tale: making bold promises to local communities and stakeholders is one thing, but fulfilling them amid complex legal challenges is quite another.

For now, the fate of Bally’s Bronx casino will depend on decisions made in Albany and the cooperation of various local and state agencies. As the company moves forward with its plans, it will likely face increasing pressure to navigate both legal uncertainties and the expectations of Bronx residents who may be looking at the proposed equity offer with cautious optimism.

 

By involving the community financially, Bally’s could be hoping to bolster its position with influential stakeholders.

 

Conclusion

While the idea of offering local residents an ownership stake in the potential Bronx casino could serve as a powerful tool to build political and community support, it is clear that Bally’s has much more work ahead to make this vision a reality. The company’s experience in Chicago demonstrates the complexities involved in community-based investment models, and while Bally’s may succeed in garnering local enthusiasm, it will need to clear numerous legal and regulatory hurdles before its casino dream can be fully realized in the Bronx.