Bally’s Chicago Casino $31 Million in Stock Sales Disappoint

Bally’s latest move to fund its $1.7 billion Chicago casino in River West added 1,800 investors to its real estate gamble, falling short of its $250 million stock sales target, but more offerings are on the horizon.

The company raised $31 million this week through a stock offering tied to its Host Community Agreement with the city, which required that 25 percent of the casino be minority-owned, according to an SEC filing. The sale brought in $5.5 million from small investors and another $25.6 million from private buyers, with shares priced between $250 and $25,000, the Chicago Tribune reported. Bally’s Chairman Soo Kim cast it as the first in a series of sales, after raising just 12.4 percent of the goal. The value of the IPO is $96.7 million, including Class A investments, private placement and Bally’s funding to support individual investors, according to the filing.

the ownership push for redeveloping the 30-acre former Chicago Tribune printing plant site at 700 West Chicago Avenue is just one piece of a far larger financing puzzle for Bally’s. The company has already locked down $940 million in debt, which is funding demolition and foundation work at the former Tribune Publishing site along the Chicago River, where the permanent casino and resort are scheduled to open in about a year. The balance of the project cost will be covered through a mix of equity sales and additional financing.

The offering’s shortfall raises the risk of noncompliance with the Host Community Agreement, which could trigger penalties or even jeopardize the city’s approval, Bally’s warned. The project is secure as long as debt and construction financing continue flowing. Unlike the stock offering, the debt facility is critical to keeping the build-out on schedule.

The equity sale also highlights a broader tension in casino development: pairing community ownership promises with the realities of large-scale financing. While 1,800 small investors bought into the $250 tier, most of the heavy lifting came from big checks in the private placement. Critics said the approach risks turning a political win into a symbolic gesture, while the real estate project powering ahead will ultimately depend more on lenders than local shareholders.

Bally’s Chicago refiled and expanded the IPO in April, eliminating the minority requirements in the IPO after two lawsuits from two white men alleging discrimination in the investment opportunity were settled in Chicago federal court. Loop Capital Markets, a Chicago-based placement agent, headed up the IPO offering. Bally’s has operated a temporary casino at the Medinah Temple since late 2023.

The construction timeline on the casino, which includes a 500-room hotel, 10 restaurants, 4,000 gaming positions and an exhibition space, is set for an opening date by September 2026, but recent construction delays could affect that goal.

— Eric Weilbacher