The corporation behind Chicago’s casino has accepted a buyout offer from its largest shareholder under a $4.6 billion merger agreement that will keep the company publicly traded.
Bally’s announced Thursday it accepted the $18.25-per-share buyout from Standard General, the New York hedge fund led by Bally’s chairman Soo Kim.
That’s a premium over the $15-per-share offered up in March by Kim, whose fund currently owns about a quarter of Bally’s stock.
Kim previously tried and failed to take the company private at $38 per share in 2022, shortly before former Mayor Lori Lightfoot named Bally’s her chosen operator for the coveted Chicago casino license.
A special committee set up by the corporation unanimously approved his latest offer that aims to combine Bally’s with Queen Casino & Entertainment, another Standard General company that owns four casinos including the downstate DraftKings at Casino Queen. Bally’s currently operates 16 casinos nationwide, including its temporary Chicago operation at the historic Medinah Temple.
Investors can roll over their Bally’s shares into the newly combined company, which will remain publicly traded, Bally’s said.
Pending federal regulatory approval from the U.S. Securities and Exchange Commission, Bally’s says it expects to close on the deal in the first half of 2025.
In a statement, Kim said the deal “provides Bally’s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline.” He couldn’t be reached directly for comment.
Bally’s CEO Robeson Reaves said in a statement that the deal allows the company to proceed “with our development pipeline, including construction of our permanent casino resort in Chicago.”
Earlier this month, Bally’s announced it secured a financing deal with a Pennsylvania real estate firm to cover $940 million in construction costs on its $1.34 billion permanent casino pegged for 777 W. Chicago Ave.
The company also revealed an updated layout for the entertainment complex that now calls for a 34-story hotel over Ohio Street. Original plans to place the hotel along Chicago Avenue and the river were scrapped when planners realized that would damage city water mains.
Mayor Brandon Johnson previously expressed skepticism about Bally’s viability to finish the massive gambling destination, but said earlier this month he was “pleased” the company locked up its financing for the project.
His office didn’t have immediate comment on Thursday’s merger announcement.
Bally’s started demolition of the former Chicago Tribune printing press earlier this month and has said it’s on track to open by September 2026 as required by state gambling law.
In the meantime, early returns have been lackluster at the temporary Medinah Temple operation.
Though it has emerged as a top draw for Illinois gamblers, it had only generated about $7 million in city taxes through the first half of the year. Johnson’s budget is banking on $35 million this year for the city’s woefully underfunded police and firefighter pension systems.
A change in Bally’s ownership would also require Illinois Gaming Board approval to keep taking bets in the state. A spokesperson said the state agency "is aware of the proposed Bally’s transaction, and we are reviewing it."
