Fundraising for Chicago’s first casino was delayed after Bally’s $250 million IPO encountered an unforeseen obstacle with the U.S. Securities and Exchange Commission (SEC). Bally’s 25% minority ownership pledge for its $1.7 billion entertainment complex was intended to be met by the IPO, but it did not close as expected in February.
The SEC did not declare the registration effective before financial statements expired, invalidating the prospectus. As a result, Bally’s had to refund investor deposits. “It was disappointing for the SEC to not respond,” said Bally’s Chairman Soo Kim. “We’re going to come back. We’re going to update our financials and resubmit.”
Originally launched in January, the IPO allowed women and minority investors to purchase shares ranging from $250 to $25,000. Bally’s now plans to update its financials and relaunch the offering in March. The SEC has not commented on the situation, following its policy of not discussing individual company filings.
Legal and Construction Challenges Persist
The IPO’s investor restrictions are still being contested in a court lawsuit. The action sought an injunction to halt the IPO and was launched by opponents who claimed that white men were being discriminated against. A federal judge in Chicago, however, turned down the request, allowing Bally’s to proceed while the larger case is still pending.
Despite the IPO setback, Bally’s still must secure 25% minority ownership. If the relaunch faces further issues, alternative financing options may be explored. “We want to have this community investment program offered to the everyday investors, the everyday Chicagoan,” Kim emphasized.
Meanwhile, Bally’s continues work on its Chicago casino, currently operating a temporary location at Medinah Temple. However, the project has faced construction delays. In December, debris from demolition spilled into the Chicago River, halting progress for a month. The city later approved the resumption of site clearing, and foundation work began in February.
Additionally, Bally’s had to shift the planned hotel tower’s location to avoid damaging municipal water pipes. Despite these setbacks, the company insists the permanent casino remains on track for a September 2026 opening.
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