Chicago residents gathered Tuesday night at the Chicago Urban League on 45th and Michigan in Bronzeville to learn how Black investors can gain ownership in Bally’s Chicago, the city’s first casino. Approximately 20 people attended in person, while others joined virtually to explore the investment opportunity. The session provided information ahead of the January 31 deadline for investors to submit their Indications of Interest.
The investment is part of the initial public offering of Bally’s Chicago, Inc., a Delaware corporation and an indirect subsidiary of Bally’s Corporation. If all goes according to plan, the permanent resort and casino is slated to open to the public in September 2026. Once complete, the development at 777 W. Chicago Avenue, which is the former Tribune Publishing site, will introduce an expansive gaming floor, a 500-room hotel, a 3,000-seat theater, and a variety of dining options, along with a riverwalk extension and public park.
Bally’s secured approval for Chicago’s first and only casino license in 2022 with equity as a key factor in its selection. The company committed to a crowdfunding initiative that offers small investors, specifically minority and women investors, a chance to own a collective 25% equity stake in its Chicago casino and resort project as part of its Host Community Agreement.
Last month, Bally’s Chicago launched the marketing of its initial public offering and concurrent private placement for equity ownership interests, available exclusively through a prospectus and information memorandum. Loop Capital Markets is serving as the sole placement agent for the offering. The funds raised will support the development of Bally’s planned permanent casino and resort.
Tuesday’s event at the Chicago Urban League aimed to provide Black investors with a clearer understanding of how they could take part in the opportunity. The event kicked off shortly after 6 p.m. with opening remarks from Karen Freeman-Wilson, President and CEO of the Chicago Urban League, who framed the discussion within the organization’s mission of economic equity and social justice.
“This presents an opportunity for everyday people like all of us in the city of Chicago,” Freeman-Wilson said. “We are excited to have someone here who will tell us firsthand about this opportunity. This is the bread and butter of the Urban League’s mission—to pursue economic equity and social justice for Chicago residents.”
After her remarks, she introduced Michael Jackson of Loop Capital Markets, who provided an overview of the investment structure and financing options, with initial investments ranging from $250 to $25,000.
Jackson emphasized the rarity of an opportunity where a small investor can participate on the same terms as a major investor. He noted that Bally’s has never launched a program like this before. “This is a very unique opportunity,” he said. “It’s rare for someone investing $250 to have the same opportunity, at the same price, in the same security, and at the same time as someone investing $750 million. That just doesn’t happen.”
Bally’s is offering 10,000 Class A Interests, which represent 25% of the voting power and 100% of the economic interest in Bally’s Chicago, Inc. Investors can choose from four different classes of stock with varying initial investment amounts and financing options:
- Class A-1: Invest $250 upfront and finance $24,750 through a loan (500 shares).
- Class A-2: Invest $2,500 upfront and finance $22,500 through a loan (1000 shares).
- Class A-3: Invest $5,000 upfront and finance $20,000 through a loan (1000 shares).
- Class A-4: Invest the full $25,000 upfront with no loan (7,500 shares).
Each share class, except A-4, comes with an associated non-recourse subordinated loan. Jackson explained that since the investment loan is a non-recourse loan, investors are not personally liable for the loan.
“If the casino never gets built, burns down, or never makes money, you as the investor are not on the hook for anything,” Jackson said. He also clarified that the subordinated loan does not appear on an investor’s credit report, nor does it require a credit application. Additionally, any dividends earned will first be used to pay down the loan before distributions are made directly to investors.
“If you invest $25,000 upfront, there is no loan involved,” Jackson said. “You would receive any dividends directly whenever the company decides to distribute them.”
Once the offering closes and all transactions are finalized, Bally’s Chicago, Inc. will have five classes of stock: Class A-1, Class A-2, Class A-3, Class A-4, and Class B Interests.
While Class A Interests are available for investors, Class B Interests will not be offered as part of this sale. Instead, they will be exclusively held by Bally’s Chicago Holding Company, LLC (Bally’s Chicago HoldCo), the direct parent of Bally’s Chicago, Inc. and a wholly owned subsidiary of Bally’s Corporation.
Many attendees left the information session feeling optimistic about the opportunity to own a stake in Bally’s Chicago Casino. For some, the meeting reinforced their decision to invest, while others—who preferred to remain anonymous—felt it was important to research the current market environment further before making a commitment.
For Shenise Cook, a Chatham resident with prior experience in crowdfunding investments, the opportunity made sense.
“I already texted my sister and let her know,” Cook said after the presentation. “I understand how many people go to the casino, and I thought the presentation was thorough, considering the wide range of investment experience in the room.”
Tracy Van, a Chesterfield resident, learned about the investment opportunity from her friend earlier that day. She was so convinced by the potential that she completed her Indication of Interest before even attending the meeting.
“I said yes because it’s a casino, and I know it’s going to make money,” Van said. “I wanted to get in on the ground floor.”
The company’s registration statement highlights that this investment is highly speculative and comes with a high degree of risk. Investors should be prepared for the possibility of losing their entire investment and should only participate if they can afford that level of risk. Additionally, the company notes that returns may not be realized within the first five years.
Since there is currently no established trading market for these securities, the investment is considered illiquid in the short to medium term, meaning it could be difficult to exit if an investor wants to sell their shares.
With the January 31 deadline approaching, residents are weighing their options, considering the risks, and deciding whether this first of its kind opportunity aligns with their financial goals. The investment opportunity is open to residents of Illinois, Florida, New York, and Texas who meet specific requirements outlined in the offering. Residents of other states must be accredited investors to participate.
Before committing to any investment, it’s crucial for potential investors to conduct thorough research and assess the risks involved. While the opportunity to invest in Bally’s Chicago may seem attractive, no investment is without risk—including the possibility of financial loss if projections fall short. Investors should carefully review the terms of the offering, fully understand the loan structure, and consider the long-term financial implications of owning Class A Interests. Seeking guidance from financial advisors, accountants, or legal professionals can provide valuable insight into the risks and potential rewards. Investing in a casino project, like any other venture, requires a clear understanding of market conditions, projected returns, and the potential for unforeseen challenges.
To stay updated on Bally’s investment opportunity, subscribe to Chicago Southsider. For detailed information about the offering, visit BallysChicagoInvest.com
