Bally’s Offers Shares in Chicago Casino to Minority Investors

On Monday, Bally’s Corporation announced that shares in its forthcoming permanent casino in Chicago are now available for certain members of the public to purchase. The offering represents 25% of the future casino's operations and fulfills a key part of the agreement between Bally’s and the city of Chicago, which granted Bally’s the exclusive license to operate the city’s first casino.

This move, which caters specifically to ethnic/racial minorities and women, is a significant step in Bally’s ongoing commitment to diversify ownership in the gaming industry. However, prospective investors looking for immediate returns should temper their expectations, as the company has been clear about the long-term nature of the investment.

 

The Growth Opportunities

Bally’s commitment to offering shares to minority investors was a central factor in securing the casino license. In May 2022, former Chicago Mayor Lori Lightfoot highlighted Bally’s promise to prioritize minority ownership as a deciding element in her recommendation to allow the company to build and operate the city’s inaugural casino. This latest announcement, made on December 30, 2024, marks a pivotal moment in fulfilling that commitment.

The funds raised through this offering are earmarked to help finance Bally’s planned permanent casino and resort along the Chicago River. While Bally’s had previously promised this stock offering as part of its agreement with the city, it follows a broader strategy of raising capital for the project. Notably, this is not the first time the company has secured funding for the development.

In July 2024, Bally’s entered a partnership with Gaming and Leisure Properties, Inc. (GLPI), which assumed ownership of the land where the casino will be located. This deal allowed Bally’s to focus on building the casino while GLPI provided the necessary capital for improvements and land acquisition. The relationship with GLPI proved instrumental in launching the project, and the latest stock offering continues to raise funds to fulfill Bally’s commitments.

The concept of offering shares in a specific casino operation, rather than in an entire gaming company, is a rarity within the U.S. gambling industry. While minority investments have been sought in past projects, such as The Cordish Companies’ $180 million investment from minority stakeholders for a proposed Richmond, Virginia, casino (which ultimately never came to fruition), Bally’s approach is distinct.

Investors in Bally’s Chicago casino will be able to buy into 25% equity for as little as $250. This low buy-in price may attract a broader range of participants, particularly those who may not typically have access to such investment opportunities. However, with the city’s economic challenges and the casino's long-term financial horizon, investors should be aware that returns may not come quickly.

Bally’s has been upfront about the risks involved in the investment. According to the terms of the agreement with Chicago, investors will receive voting rights in casino matters, but no dividends are expected until approximately three to five years after the permanent casino opens its doors. Additionally, Bally’s is not obligated to pay dividends at any point, making the future financial benefits uncertain for early investors.

Despite these conditions, the opportunity to be part of a major urban development in Chicago—one of the largest U.S. cities—presents a unique chance for some to claim ownership in a thriving business. The offering is expected to last through early February 2025, though this could be extended depending on demand.

 

Bally’s says that ‘the monies raised are intended to support the funding for Bally’s planned permanent casino and resort' and points to its promise to provide such investment opportunities.

 

Tbe Future

While this stock offering might appeal to Chicagoans seeking a stake in their city’s first casino, investors must understand the risks involved. Bally’s has communicated clearly that dividends are unlikely in the short term, and participants should approach the opportunity with a long-term perspective. For those willing to wait, the casino could eventually generate profits, but it remains to be seen how successful Bally’s will be in delivering on its expectations.

Bally's effort to include minority investors in its Chicago casino marks a significant step forward in diversifying the gaming industry. While the opportunity presents a low-cost entry for eligible investors, it also requires patience and a long-term outlook. For those willing to take a risk, the promise of ownership in a future Chicago landmark offers an enticing proposition—though it remains uncertain how much, if any, financial gain will come from it.