Bally’s Chicago Casino Hits Roadblock as SEC Documents Expired

Bally’s Chicago played its best hand, but the Securities and Exchange Commission wasn’t ready to deal.

The Rhode Island-based gambling firm must return investor deposits and revise its filings for its initial public offering after financial documents became outdated during the regulatory approval process, the Chicago Tribune reported.

The IPO aimed to raise $250 million for Bally’s casino project in Chicago’s River West neighborhood. Development plans include converting the former Chicago Tribune printing plant at 777 West Chicago Avenue into a $1.7 billion casino and entertainment complex.

The company initially promoted the IPO to “underrepresented communities” through a roadshow and dedicated website. Thousands of investors opened accounts as a result, hoping to secure a stake in the complex. Investments ranged from $250 to $25,000 per share.

Complicating the matter is an agreement with the city that requires at least a quarter of the casino’s equity be held by minority investors. Bally’s must find another way to meet this 25 percent requirement if regulatory obstacles persist.

Bally’s Chairman Soo Kim expressed frustration with the SEC’s delay but reaffirmed the company’s intent to move forward with the offering. He said Bally’s will update financial statements when its full-year results become available this month and resubmit the IPO for approval.

Bally’s also faces legal complications in connection with the IPO. A federal lawsuit alleges that restricting the initial offering to minority investors is discriminatory. While a judge denied an injunction to block the offering, the case continues.

The site’s selection in the River West neighborhood originally led to scrutiny over its impact on the community and environment. Unforeseen infrastructure issues eventually forced the relocation of the planned hotel tower.

Construction on Bally’s permanent casino remains on track despite earlier setbacks. Foundation work resumed last month after a brief delay caused by construction debris falling into the Chicago River.

The casino, which has been operating out of a temporary location at Medinah Temple since 2023, is targeting a September 2026 opening for its permanent venue.

Bally’s is also seeking a 12-year tax incentive to lower its property tax rate from 25 percent to 10 percent for the first decade, gradually returning to the standard commercial rate. The company maintains the incentive will support long-term economic benefits, including union job creation and an estimated $200 million in annual gaming taxes for Chicago.

— Andrew Terrell