In a draft registration statement recently submitted to the Securities and Exchange Commission (SEC), Bally’s said it may offer certain residents of the city of Chicago an ownership stake in its coming $1.7 billion casino resort.
The statement said residents would have to “satisfy the qualification requirements” of the Host Community Agreement Bally’s signed with Chicago officials. The agreement specifies at least 25 percent of the project’s equity must be held by minorities or by minority owned and controlled businesses, which was a key factor in Mayor Lori Lightfoot’s backing of Bally’s proposal in 2022.
Details of the offer are not known, but in a statement, Bally’s said, “The number of ownership interests to be offered, the terms thereof and the price range for the proposed offering have not yet been determined. The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.”
Bally’s officials said there’s no guarantee any shares will be issued.
The website for Bally’s Chicago project states, “Minority investors will own 25 percent of the project, and include philanthropists, business owners, sports stars, celebrities and everyday Chicagoans from the Black and Latino communities, as well as other ethnic and gender representation.”
Currently, Bally’s plans to open a temporary casino in the historic Medinah Temple at 600 North Wabash Avenue by August, although the Illinois Gaming Board has not yet approved it.
Bally’s, based in Rhode Island, owns and manages 15 casinos in 10 states. The company is building a casino in State College, Pennsylvania in addition to the Chicago venue.
Meanwhile, Bally’s recently announced major changes in its management, pending regulatory approvals. Marcus Glover will replace Chief Financial Officer Bobby Lavan, who is leaving “to pursue other opportunities,” according to a statement.
Bally’s Chief Executive Officer Robeson Reeves said, “I want to express my gratitude to Bobby for his leadership and contributions since joining Bally’s in 2021. Notably, Bobby led the acquisition, financing and integration of Gamesys, which has been instrumental to the growth and diversification of our business. We wish Bobby all the best in his next chapter.”
Glover formerly was president of Borgata in Atlantic City and most recently worked at QPSI, “a supply-chain and contract-packaging company,” according to Bally’s statement. Glover also has been president at Beau Rivage, general manager at Horseshoe Cleveland and Thistledown Racino and assistant general manager at Caesars Entertainment in the St. Louis and Biloxi markets.
In a statement, Bally’s Chairman Soo Kim said, “Marcus is an accomplished leader with a proven track record of driving business strategies and expertise in leading large integrated resorts and casino operations. I am confident that his experience and strong financial acumen make him the right leader to help Bally’s grow and achieve its long-term financial goals.”
Bally’s also hired H.C. Charles Diao who will serve as senior vice president of finance and corporate treasurer, pending regulatory approval. Diao most recently worked at DXC Technology and formerly was a partner at Bear Stearns.
In addition, Bally’s named Jaymin B. Patel as vice chairman of the board and as overseer of the board’s new Operational Committee, which will pursue cost reductions and streamlined operations and a new corporate center.
Patel, a longtime Bally’s board member, formerly was chief executive officer at GTECH and chief financial officer at Lottomatica. Kim said Patel will “oversee the integration of our business as we execute our long-term growth strategy. These appointments add substantial financial depth and global-gaming-management experience to our team as we execute on the growth opportunities.”
