In order to raise money for the operator's $1.7 billion casino hotel in the city, Bally's announced that it has concluded its Chicago initial public offering (IPO), the first of what may be several placements.

Nearly 1,600 of the 1,800 investors who took part in the offering were from Illinois, according to the Rhode Island-based regional casino operator.  As part of the gambling company's host city agreement, the IPO was accessible to nonaccredited market participants.

"Nearly 1,800 unique shareholders including 1,007 Chicagoans and 1,573 Illinois-based shareholders are now partners of the project, going a long way to fulfilling our commitment to the City of Chicago,” said the company in a press release.

In July, Bally's stated that it hoped to complete the Chicago IPO this month and that it wanted to raise $250 million, while some reports indicate that amount was lowered to $190 million.  The amount raised was not disclosed by the company.  The transaction was spearheaded by Chicago-based investment bank Loop Capital.

The Chicago IPO of Bally was once controversial

Bally's intended 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 restricted to women and minorities.  That idea attracted interest from investors, but it also faced legal problems due to its discriminatory nature.

Bally's eventually joined Illinois authorities in settling two lawsuits, including one from the Liberty Justice Center, brought by prospective investors who claimed they were prohibited from purchasing shares in the Chicago casino because they are white men, despite warnings of drawn-out legal disputes and expenses.

The Chicago sale was delayed as a result of those problems.  The Securities and Exchange Commission (SEC) failed to pronounce Bally's Chicago IPO plan valid, which caused a delay in March.  Later, the company made the IPO accessible to a wider range of investors, which made it possible for it to move on.  The racial and gender distribution of those who purchased shares in the now-closed offering was not disclosed.

Since 2023, Bally's has had a temporary gaming establishment in Chicago's Medinah Temple neighborhood. The permanent integrated resort is expected to open in the River West district the following year.

There May Be More Share Sales in the Future

Although no date for such sales was given, Bally's may sell further ownership holdings in the Chicago casino in the future.

"Bally’s delivers on an innovative way to do public-private partnerships,” according to the press release. “This is the first of what Bally’s Chicago, Inc. intends to be a few rounds of placements.”

If the firm is granted permission to build a casino on a Bronx land that is now a golf course, it has promised to carry out a comparable share sale in New York.