Latest news with #Bally'sChicago
Miami Herald
29-04-2025
- Business
- Miami Herald
Bally's Chicago files amended IPO eliminating gender and minority investor requirement
Bally's Chicago has filed an amended registration for its stalled initial public offering with the Securities and Exchange Commission, opening up the investment opportunity beyond women and minorities. Casino executives say they are confident the IPO, which was challenged by two federal lawsuits over alleged discrimination against white men, will pass muster with regulators and still meet a 25% minority investment requirement for Bally's Chicago with the city. "Thousands of qualified minorities have already applied," said Chris Jewett, Bally's senior vice president of corporate development. "We're going to meet the goal." Bally's Chicago launched the $250 million IPO in January exclusively for women and minorities to buy a 25% equity stake in the casino, looking to fulfill a commitment to the city and raise funds for the construction of its planned $1.7 billion entertainment complex in River West. Chicago-based Loop Capital Markets serves as the lead placement agent for the IPO, which initially was limited to Blacks, Asian Americans, Hispanics and other "socially disadvantaged" people as defined by city guidelines. "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," Jim Reynolds, CEO of Loop Capital Markets, said in a news release announcing the amended registration. While the IPO generated applications from thousands of minority investors who opened and funded accounts to buy shares in the city's first casino, the SEC did not declare the registration effective before the prospectus financials lapsed, essentially shutting it down in February. At the time, Bally's Chairman Soo Kim told the Tribune the company didn't know why the IPO stalled, while an SEC spokesperson said the federal agency does not comment on individual company filings. But the only substantial change in the amended registration filing was the removal of the minority investor qualifications. Bally's submitted updated financials and an amended registration statement on April 22, offering 10,000 Class A shares but striking all references to the minority investor requirements. The amended IPO added new language for "preferential allocations" of Class A interests to Chicago and Illinois residents. "We take pride in having attracted a substantial amount of interest in ownership from women and minority groups," Kim said in the news release. "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." In May 2022, Rhode Island-based Bally's was selected to build the Chicago casino, besting finalists Rivers Casino and Hard Rock with a proposal that includes an exhibition hall, a 500-room hotel, a 3,000-seat theater, 10 restaurants and 4,000 gaming positions. As part of the winning bid, the city required an equity component of at least 25% minority investment in the proposed casino. The IPO created 10,000 Class A shares featuring four classes of stock ranging from $250 to $25,000, supplemented by loans from Bally's Chicago to enable "underrepresented communities" to participate. Qualified minorities applied online through Jan. 31, with the IPO initially expected to close Feb. 7. A private placement sold 1,185 Class A shares to qualified minority investors, as well as 2,141 Class A shares to the Bally's Chicago Holding Company, according to the amended filing. With thousands of additional minority investors applying for shares and putting down deposits during the initial offering in January, Jewett said the amended IPO will still meet the minority equity goals, even if it opens up to non-minority investors. Jewett said Bally's is hoping to close the IPO "as soon as possible," pending SEC approval. A city spokesperson did not immediately respond to a request for comment Monday. It is unclear how the amended IPO will affect separate lawsuits filed in late January against the city and Bally's by the American Alliance for Equal Rights and Mark Glennon, a Wilmette resident. Both lawsuits, which are ongoing in Chicago federal court, alleged the IPO discriminated against white men by limiting the investment opportunity to women and minorities. While the minority requirement has been eliminated, Bally's Chicago said in its amended IPO registration it expects to incur "substantial costs" defending the lawsuits, and may face additional litigation over the matter. Meanwhile Bally's, which has been operating out of a temporary casino at Medinah Temple since September 2023, is making progress in building its permanent facility at the 30-acre site of the former Chicago Tribune printing plant. After some demolition delays, Bally's began driving foundational caissons into the ground in February, with the permanent casino still targeted for a September 2026 opening. "The caissons are almost done," Jewett said. "They're going to start pouring concrete in a couple weeks." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Chicago Tribune
28-04-2025
- Business
- Chicago Tribune
Bally's Chicago files amended IPO eliminating minority investor requirement
Bally's Chicago has filed an amended registration for its stalled initial public offering with the Securities and Exchange Commission, opening up the investment opportunity beyond women and minorities. Casino executives say they are confident the IPO, which was challenged by two federal lawsuits over alleged discrimination against white males, will pass muster with regulators and still meet a 25% minority investment requirement for Bally's Chicago with the city. 'Thousands of qualified minorities have already applied,' said Chris Jewett, Bally's senior vice president of corporate development. 'We're going to meet the goal.' Bally's Chicago launched the $250 million IPO in January exclusively for women and minorities to buy a 25% equity stake in the casino, looking to fulfill a commitment to the city and raise funds for the construction of its planned $1.7 billion entertainment complex in River West. Chicago-based Loop Capital Markets serves as the lead placement agent for the IPO, which initially was limited to Blacks, Asian Americans, Hispanics and other 'socially disadvantaged' people as defined by city guidelines. '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,' Jim Reynolds, CEO of Loop Capital Markets, said in a news release announcing the amended registration. While the IPO generated applications from thousands of minority investors who opened and funded accounts to buy shares in the city's first casino, the SEC did not declare the registration effective before the prospectus financials lapsed, essentially shutting it down in February. At the time, Bally's Chairman Soo Kim told the Tribune the company didn't know why the IPO stalled, while an SEC spokesperson said the federal agency does not comment on individual company filings. But the only substantial change in the amended registration filing was the removal of the minority investor qualifications. Bally's submitted updated financials and an amended registration statement on April 22, offering 10,000 Class A shares but striking all references to the minority investor requirements. The amended IPO added new language for 'preferential allocations' of Class A interests to Chicago and Illinois residents. 'We take pride in having attracted a substantial amount of interest in ownership from women and minority groups,' Kim said in a news release. '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.' In May 2022, Rhode Island-based Bally's was selected to build the Chicago casino, besting finalists Rivers Casino and Hard Rock with a proposal that includes an exhibition hall, a 500-room hotel, a 3,000-seat theater, 10 restaurants and 4,000 gaming positions. As part of the winning bid, the city required an equity component of at least 25% minority investment in the proposed casino. The IPO created 10,000 Class A shares featuring four classes of stock ranging from $250 to $25,000, supplemented by loans from Bally's Chicago to enable 'underrepresented communities' to participate. Qualified minorities applied online through Jan. 31, with the IPO initially expected to close Feb. 7. A private placement sold 1,185 Class A shares to qualified minority investors, as well as 2,141 Class A shares to the Bally's Chicago Holding Company, according to the amended filing. With thousands of additional minority investors applying for shares and putting down deposits during the initial offering in January, Jewett said the amended IPO will still meet the minority equity goals, even if it opens up to non-minority investors. Jewett said Bally's is hoping to close the IPO 'as soon as possible,' pending SEC approval. A city spokesperson did not immediately respond to a request for comment Monday. It is unclear how the amended IPO will impact separate lawsuits filed in late January against the city and Bally's by the American Alliance for Equal Rights and Mark Glennon, a Wilmette resident. Both lawsuits, which are ongoing in Chicago federal court, alleged the IPO discriminated against white men by limiting the investment opportunity to women and minorities. While the minority requirement has been eliminated, Bally's Chicago said in its amended IPO registration it expects to incur 'substantial costs' defending the lawsuits, and may face additional litigation over the matter. Meanwhile Bally's, which has been operating out of a temporary casino at Medinah Temple since September 2023, is making progress in building its permanent facility at the 30-acre site of the former Chicago Tribune printing plant. After some demolition delays, Bally's began driving foundational caissons into the ground in February, with the permanent casino still is targeted for a September 2026 opening. 'The caissons are almost done,' Jewett said. 'They're going to start pouring concrete in a couple weeks.'
Chicago Tribune
28-02-2025
- Business
- Chicago Tribune
Bally's Chicago $250 million IPO stalled at SEC; casino refunding deposits of potential minority investors
In a setback to its fundraising efforts and inclusive equity obligations to the city, the $250 million Bally's Chicago initial public offering for minority investors failed to close as planned in February after it stalled at the Securities and Exchange Commission. Despite generating interest from thousands of minority applicants who opened and funded accounts to buy shares in the city's first casino, the SEC did not declare the IPO registration effective before the prospectus financials became outdated and 'went stale,' essentially shutting it down, the company said. The casino is refunding those initial deposits and will go back to the drawing board to recruit women and minority participants for an updated offering, Bally's Chairman Soo Kim told the Tribune. 'It was disappointing for the SEC to not respond,' Kim said Thursday. 'We're going to come back. We're going to update our financials and resubmit, but we don't know why they didn't respond the first time, and they may not respond the second time.' An SEC spokesperson said in an email Friday the federal agency does not comment on individual company filings. Bally's Chicago opened the initial public offering last month with an investor road show and dedicated website for women and minorities to buy a 25% equity stake in the casino, looking to fulfill a minority ownership commitment to the city and raise funds for the construction of its proposed $1.7 billion entertainment complex in River West. In May 2022, Rhode Island-based Bally's was selected to build the Chicago casino, besting finalists Rivers Casino and Hard Rock with a proposal that includes an exhibition hall, a 500-room hotel, a 3,000-seat theater, 10 restaurants and 4,000 gaming positions. As part of the winning bid, the city required an equity component of at least 25% minority investment in the proposed casino. The $250 million IPO featured four classes of stock ranging from $250 to $25,000 per share, enabling 'underrepresented communities' to become investors. Qualified minorities applied online through Jan. 31, opening and funding accounts to participate in the offering. The IPO was expected to close Feb. 7. Bally's Chicago filed an amended registration with the SEC on Feb. 12, but the IPO closing date passed without garnering the needed regulatory sign-off on the final prospectus. Chicago-based Loop Capital Markets served as the lead placement agent for the IPO, which was limited to Blacks, Asian Americans, Hispanics and other 'socially disadvantaged' people as defined by city guidelines. A spokesperson for Loop Capital Markets did not respond to a request for comment on the stalled offering. Despite the IPO's failure to launch, Bally's still has a contractual obligation with the city to incorporate a 25% minority ownership stake into the Chicago casino, either through a rebooted offering or other investment vehicle. 'We want to have this community investment program offered to the everyday investors, the everyday Chicagoan,' Kim said. A city spokesperson did not immediately respond to a request for comment Friday. In addition to the regulatory issues at the SEC, the Bally's Chicago IPO is also navigating a federal lawsuit alleging the casino and the city discriminated against white men by limiting the offer to women and minorities. Earlier this month, a Chicago federal judge denied a motion for an injunction to halt the IPO, but the lawsuit is ongoing. Bally's, which has been operating out of a temporary casino at Medinah Temple since September 2023, is building its permanent facility at the 30-acre site of the former Chicago Tribune plant. The construction project has not been without its own challenges. Demolition had been delayed for nearly a month after a Dec. 14 mishap spilled construction debris into the adjacent Chicago River. Last month, the city gave Bally's the green light to resume razing the remaining vestiges of the Freedom Center. Bally's began driving foundational caissons into the ground in February, with the permanent casino targeted for a September 2026 opening, the company said. Last year, Bally's had to relocate its planned hotel tower, which was shifted from north of the casino to the south after it was determined that the caissons might damage municipal water pipes along the river. The city approved the new site plan Jan. 23. Originally Published:
Axios
06-02-2025
- Business
- Axios
DEI backlash threatens Chicago casino
It's been more than two years since Bally's won the right to build a riverfront casino in Chicago, but some of the IPO financing now is being threatened by a civil rights lawsuit. Why it matters: This might be a blessing in disguise for both the company and the city, as the project has become fiscally questionable and politically unpopular. Driving the news: An anti-affirmative action group last week sued both Bally's and Chicago, on behalf of two white men it claims were illegally prevented from investing in the casino. The plaintiff has a track record of legal success, most notably the landmark Supreme Court case that struck down affirmative action in higher education. It also was behind a lawsuit that prevented a small venture capital firm from offering grants to Black women entrepreneurs. In short, the complaint alleges that the investor qualifications are racially discriminatory. Catch up quick: The joint agreement required that 25% of the Chicago casino would be owned by women or minorities, although it didn't specify how Bally's would achieve that outcome. The company late last year filed for a $195 million initial public offering, but it wasn't a typical IPO. Instead, the only eligible buyers were women, minorities, or firms majority-owned by women or minorities. The interests wouldn't subsequently trade on an exchange. Instead, they'd pay dividends and be relatively illiquid for at least the first few years — with any transfers having to be approved by Bally's in order to maintain the 25% threshold. Zoom in: If the lawsuit is successful, Bally's may be able to fulfill the agreement by withdrawing the IPO and trying to find a qualified private equity investor. But the more likely result is that it will be in breach of its agreement with Chicago, which then must decide on whether or not to enforce this clause and terminate the entire deal. What they're saying: "Bally's has a binding Host Community Agreement with the City of Chicago to build what will be the best regional casino in the country," a Bally's Chicago spokesperson tells Axios. "Bally's honors its commitments. The Bally's Chicago IPO complies with our obligations under the Host Community Agreement with the City of Chicago." A city representative declined comment, citing pending litigation. Behind the scenes: There is reason to believe that both sides would at least consider walking away. Bally's credit rating has been repeatedly downgraded after signing the Chicago deal, and now is in the process of being acquired. This is its largest project to date, and the results from its temporary casino in Chicago have been underwhelming. Chicago's current mayor didn't negotiate the Bally's deal and has been relatively mum about the temporary casino and the permanent one's future. The bottom line: The entire project is now a risky bet. Read the lawsuit:
Fox News
30-01-2025
- Business
- Fox News
Chicago casino project accused in lawsuit of not allowing White men to invest: 'Blatantly discriminatory'
A new casino slated to open in the heart of downtown Chicago is being accused of violating U.S. civil rights laws by allegedly preventing White men from investing in the project – a move that has prompted a lawsuit. Bally's Chicago is a $1.7-billion dollar casino and resort slated to open in the Windy City's River West neighborhood in 2026. The expansive complex is projected to be Illinois' biggest casino, boasting a 500-room hotel tower with a rooftop bar, a riverwalk, thousands of slot machines and a 3,000-seat theater. Bally's will be the city's first casino; its bid was selected by then-Mayor Lori Lightfoot in 2022. As part of the Host Community Agreement Bally's signed with the city of Chicago, the casino committed to 25% minority ownership. The HCA was drafted in accordance with a 2019 state law expanding gambling in Illinois. Currently, in order to take part in the casino's $250 million initial public offering, one must meet its "Class A Qualification Criteria," part of which states that an investor must be a "minority or woman." A minority is defined as "African-Americans, American Indians, Asian-Americans, Hispanics" and other groups deemed by the city to be "socially disadvantaged" including Arab Americans, per the Municipal Code of Chicago. The Wisconsin Institute for Law and Liberty is suing Bally's Casino and members of the Illinois gaming commission for what they allege is racial discrimination. WILL is representing two would-be investors who say they were denied the ability to take part in the project because of their race – Richard Fisher and Phillip Aronoff – who are part of the American Alliance for Equal Rights, which is also a plaintiff in the case. The lawsuit alleges that Bally's is in violation of the Civil Rights Act of 1866, the first Ku Klux Klan Act and years of Supreme Court precedent by preventing White men from buying stock in their company. The suit also alleges that Bally's is preventing shareholders from transferring shares to people who do not meet "Class A" criteria. "Making a contract is essential to the rights of citizenship. What Bally's is doing here is absolutely illegal and has been for decades and decades," Dan Lennington of the Wisconsin Institute of Law and Liberty told Fox News Digital. Chicago attorney Patrick Callahan is not a party to the lawsuit, but he told Fox News Digital he was unable to invest in the project because he is a White man. "It's so blatantly discriminatory, I can't imagine how that could possibly be permissible," Callahan said. Callahan, 39, said he first heard about the casino from a realtor he follows on Instagram. He thought it was an exciting investment opportunity and attempted to buy shares in the project. After filling out his personal information on the Bally's investment portal, he was asked if he met the "Class A" criteria. When Callahan input that he did not, due to his race and gender, he said the portal stated that he could not proceed with his investment. "This offering is only available to entities who satisfy Class A Qualification Criteria in accordance with the Host Community Agreement with the city of Chicago," the portal displayed in red text. "I assumed that it was more of a guideline than a hard rule… this can't actually be… but sure enough this is exclusively available to women and certain minorities," Callahan told Fox News Digital. Callahan said that the alleged racial discrimination was far from shocking given how the city has been run under Chicago Mayor Brandon Johnson, but he was still alarmed. "It didn't surprise me as much as it was kind of startling because it was just so blatant… Chicago is a mess so it doesn't surprise me," he said. WILL's lawsuit could lead to legal consequences for Bally's that may even put its casino license in jeopardy, Lennington said. Bally's SEC filing stated the terms they agreed to in the HCA could leave them vulnerable to lawsuits from people who don't meet "Class A" criteria, which would incur "substantial costs" from the casino and "could adversely affect our ability to operate our casinos and could materially adversely affect our business, financial condition and results of operations," should the HCA be found invalid or unconstitutional. "The Bally's Chicago IPO complies with our obligations under the Host Community Agreement with the City of Chicago," a Bally's spokesperson told Fox News Digital in a statement. The Chicago Mayor's Office and Illinois Gaming Commission did not respond to Fox News Digital's request to comment.
