Bally’s Corporation has formally revised the terms of its initial public offering for its upcoming $1.7 billion Chicago casino, expanding access to a broader array of investors while still aiming to meet a key city-imposed diversity goal. The company recently submitted an amended registration to the U.S. Securities and Exchange Commission (SEC), removing prior race- and gender-based investor qualifications that had drawn legal scrutiny and stalled regulatory approval.

Originally launched in January, the $250 million offering reserved ownership stakes exclusively for women and minority investors in a bid to satisfy a requirement in Bally’s host agreement with the City of Chicago, which mandates that 25% of the permanent casino be owned by minorities and minority-owned businesses. However, the race-based parameters quickly drew legal challenges and ran into delays at the SEC, prompting Bally’s to revise the IPO to include all interested investors—while prioritizing those from Chicago and Illinois.

“The caissons are almost done,” said Chris Jewett, Bally’s senior vice president of corporate development, quoted by Chicago Tribune, referring to construction progress on the permanent casino. “They’re going to start pouring concrete in a couple weeks.” The casino, currently operating from a temporary site at the Medinah Temple, is projected to open its permanent facility in River West by September 2026.

Lawsuits and Regulatory Delays Prompt Strategic Pivot

The shift in strategy follows lawsuits filed by the American Alliance for Equal Rights and Wilmette resident Mark Glennon, both alleging that the original offering discriminated against white male investors. Bally’s and the City of Chicago are named in the lawsuits, which are pending in federal court. In response, Bally’s restructured its offering by striking references to gender and race while maintaining language that favors local residents.

“Thousands of qualified minorities have already applied,” Jewett said. “We’re going to meet the goal.”

In its updated SEC filings submitted on April 22, Bally’s clarified that it still intends to fulfill the city’s diversity requirement through preferential allocations and ongoing investor interest from minority groups. “To make this investment available to even more Chicagoans who make this city so great we are extending our investment opportunities, with a preference for residents of Chicago and other parts of Illinois,” said Bally’s Chairman Soo Kim in a press release.

New Terms Offer Investment Flexibility and Risk Transparency

The revised offering includes 10,000 Class A shares, which collectively represent a 25% equity stake in the casino. Shares are available in four price tiers—$250, $2,500, $5,000, and $25,000. Bally’s will provide “attributable subordinated loans” to investors who purchase lower-cost shares, covering the difference between the share’s full value and the investor’s contribution. These loans will accrue 11% interest and be repaid from Bally’s future profits, which the company projects will materialize within three to five years of opening the permanent casino.

In its prospectus, Bally’s emphasized that these shares are “highly risky and speculative” and suitable only for individuals who can absorb the potential loss of their entire investment.

Loop Capital Markets, the Chicago-based firm leading the placement, reported widespread interest during the initial IPO phase and continues to serve as the offering’s primary underwriter. “We’ve seen interest from thousands of people who appreciate having access to this unique investment opportunity,” said Loop Capital CEO Jim Reynolds.

Though the original round saw over 1,500 investors deposit funds, many were refunded after the SEC failed to declare the registration effective before financial statements expired in February. The amended filing is now awaiting federal approval, with Bally’s aiming to close the offering as soon as possible.

City Support Remains Firm Amid Controversy

Despite the controversy surrounding the initial offering, city officials continue to support Bally’s efforts and expect the company to meet all obligations under the host agreement, including the minority ownership requirement and construction of the entertainment complex.

“The City values Bally’s commitment to the Chicago Casino project and we look forward to continued progress on the permanent casino in accordance with the requirements of the host community agreement,” said a spokesperson for Mayor Brandon Johnson.

Bally’s won the bid to develop Chicago’s first casino in 2022, outpacing competing proposals from Rivers Casino and Hard Rock. The development is set to include 4,000 gaming positions, 11 restaurants, a 500-room hotel, a 3,000-seat theater, and an exhibition hall. Despite early tax revenues from the temporary site falling short of projections, the permanent facility remains a key part of the city’s long-term revenue strategy—particularly for public pensions.