Bally’s Corporation is transforming its approach to community involvement in its latest casino project situated adjacent to Ferry Point Park, previously managed by the Trump Organization. This initiative in the Bronx, New York, offers local residents a chance to invest in the casino, promising a slice of the profits and extensive community benefits.

Community and economic engagement:

In a groundbreaking move, Bally’s is enabling Bronx locals to purchase shares in the new casino, potentially owning up to 10% of the establishment. Bally’s Corp chairman, Soo Kim, highlights the opportunity for residents to invest with as little as $250, benefitting from the Bally’s Foundation to multiply their returns significantly if the casino thrives.

The proposal outlines that a minimum of 1% of the casino’s gross revenues, estimated to exceed $10 million annually, will be directed towards community programs. These funds are designated for local schools, public housing initiatives, mental health, and substance abuse programs, and BronxNet, the borough’s cable provider. The distribution of these grants will be managed by an advisory board formed by local elected officials.

The ambitious plan is not without its challenges, primarily the need for state legislative approval to repurpose part of the parkland for commercial use. This process, known as alienation, requires the backing of local legislators in the Bronx, specifically state Sen. Nathalia Fernandez and Assemblyman Michael Benedetto. According to New York Post, Kim is optimistic about overcoming these hurdles, stating, “If we can’t get alienation done, we can’t get a casino license, but we feel like we’re going to get there.”

The proposed casino is set to be a significant development in the Bronx, featuring a 500,000-square-foot gaming area, a hotel with 500 rooms, a spa, retail spaces, a large event center, and ample parking facilities.

Comparison with other projects:

This community-focused model follows a similar strategy Bally’s is employing in Chicago, where they plan an initial public offering (IPO) for their casino project. However, the Bronx initiative offers lower entry points for local investors compared to the Chicago venture’s $25,000 minimum. Notably, the Chicago project has faced regulatory and legal challenges, particularly concerning its unique IPO structure that excluded certain demographics.

The battle for casino licenses in New York is intense, with at least 11 bids submitted for just three available spots. Prominent contenders include MGM’s Empire City Casino and Genting’s Resorts World, both situated in nearby areas. Bally’s must navigate significant competition and legislative processes to bring their Bronx vision to fruition.