Bally’s Chicago $250 million IPO stalled at SEC, minority investor deposits refunded

Bally’s $250 million initial public offering (IPO) for minority investors has stalled at the U.S. Securities and Exchange Commission (SEC), forcing the casino operator to refund deposits and delay its fundraising efforts for Chicago’s first casino.
    
The IPO, which aimed to fulfill Bally’s contractual commitment to the city requiring 25% minority ownership in its planned $1.7 billion entertainment complex, failed to close as scheduled in February. Bally’s said the SEC had not declared the registration effective before financial statements became outdated, rendering the prospectus invalid, as per Chicago Tribune.“It was disappointing for the SEC to not respond,” Bally’s Chairman Soo Kim said on Thursday.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.”

The offering, launched in January, allowed women and minority investors to buy into the casino project through four stock classes ranging from $250 to $25,000 per share. Bally’s plans to submit updated financials in March and relaunch the IPO to ensure compliance with its minority ownership obligations.

The SEC has not commented on the IPO delay, in line with its policy on individual company filings. Meanwhile, a federal lawsuit challenging the IPO’s investor restrictions remains ongoing. The lawsuit, filed by opponents alleging discrimination against white men, sought an injunction to block the IPO. A Chicago federal judge denied the injunction earlier this month, but the broader legal battle continues.

Despite the IPO’s delay, Bally’s remains obligated to secure a 25% minority investment stake in the casino, either through a revised offering or an alternative financing structure.

“We want to have this community investment program offered to the everyday investors, the everyday Chicagoan,” Kim said.

Bally’s is currently operating a temporary casino at Medinah Temple while constructing its permanent facility at the site of the former Chicago Tribune printing plant. The project, however, has faced setbacks, including a month-long demolition delay after construction debris spilled into the Chicago River in December. The city has since granted Bally’s permission to resume site clearing and foundational work began in February.

Additionally, the casino’s planned hotel tower had to be relocated to the south side of the site to avoid potential damage to municipal water pipes.

Despite these challenges, Bally’s says the project remains on schedule for a September 2026 opening.