Bally’s Chicago Removes Minority Requirements in Controversial IPO

^{The temporary Bally's casino in Chicago has begun building a diverse base of customers ahead of the launch of its bigger, permanent location in the Windy City. (Image: Dan Michalski / Casinos.com)}

Bally’s Chicago has filed an amended initial public offering (IPO) registration with the Securities and Exchange Commission (SEC), in an effort designed to delicately manage its obligations to the city of Chicago with federal politics.

The amended IPO, which was filed on April 22, eliminates a restriction that limited investment to women and minorities.

Bally’s Says it Can Meet Minority Investment Requirement Without Exclusive IPO

That $250 million IPO, which was launched in January, was never approved by the SEC. It was also the subject of a federal lawsuit filed on behalf of two white men from Texas who said they were unfairly discriminated against by being excluded from the IPO “solely based on immutable characteristics.”

But changing the investment opportunity was not a simple ask for Bally’s. In the company’s host community agreement with Chicago, it was mandate that 25 percent of project equity in Bally’s Chicago be owned by minority individuals or minority-owned and controlled businesses.

But while the new version of the IPO – a key funding device for what is planned to be a $1.7 billion development in the River West area – doesn’t specifically target minority ownership, Bally’s executives say that they won’t have an issue meeting the 25 percent mandate.

“Thousands of qualified minorities have already applied,” Bally’s Senior Vice President of Corporate Development Chris Jewett said, via the Chicago Tribune. “We’re going to meet the goal.”

New IPO Prioritizes Illinois Residents

The new version of the IPO is essentially the same as the original, only without any references to the minority investment requirement. Once again, the offering is selling 10,000 Class A shares, with the only “referential allocations” reserved for Chicago and Illinois residents. Four classes of stock are available, allowing for investments ranging from $250 to $25,000. 

Bally’s has already sold 1,185 Class A shares to qualified minority investors during a private placement, which may help the company reach its obligations with the city of Chicago.

“We take pride in having attracted a substantial amount of interest in ownership from women and minority groups,” Bally’s Chairman Soo Kim said in a statement announcing the new version of the IPO. “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.”

The minority investment component of the Bally’s Chicago IPO became a target for conservative groups as the Trump administration took aim at diversity, equity, and inclusion (DEI) programs in both the federal government and in private entities, such as businesses and educational institutions. 

The American Alliance for Equal Rights filed a lawsuit on behalf of two white men who wanted to invest in Bally’s Chicago, while Wilmette, Illinois resident Mark Glennon filed a similar lawsuit. Both lawsuits are currently in Chicago federal court. 

Bally’s Chicago broke ground on construction at the site of the former Chicago Tribune press building in March 2025. The permanent casino is expected to open in late 2026, when it will replace a temporary casino currently operating at the historic Medinah Temple.