Residents gathered Thursday night at Third Baptist Church on 95th and Ashland to learn details about how Black residents can invest in Bally’s, Chicago’s first casino.
City Treasurer Melissa Conyears-Ervin and members of the Chicago Aldermanic Black Caucus hosted an information session at the church in the 21st Ward, the city’s largest Black ward, to inform residents about an opportunity for minorities and women to “create generational wealth” by buying shares in the upcoming Bally’s Casino in River West .
As part of Bally’s Host Community Agreement, the casino has to be 25 percent owned by minorities and women. The company will allow them to purchase 10,000 shares of the project at $25,000 each.
The most captivating part of the session was when residents learned that they could put up as little as $250 of their own funds to partake in the investment that presenters expressed as the biggest benefit to the Black community.
“Tonight is about a new opportunity on how to participate, about not just being a consumer but to be an owner,” Ald. Ronnie Mosley (21st Ward) said at the pulpit in front of the crowd of a couple hundred people.
During the session, attendees were taught about three different offering structures to purchase shares in four classes:
- Class A-4, where an investor puts up the full $25,000.
- Class A-3, which is $5,000 upfront with a $20,000 loan.
- Class A-2, a $2,500 upfront investment with a $22,5000 loan.
- Class A-1 tier that allows investors to pay $250 upfront for a $24,750 loan.
The loan is non-recourse, explained Sidney Dillard of Loop Capital Markets, who is the underwriter of the offering, during the information session. “That loan is not recourse, meaning that you are not responsible for it,” she said.
The non-recourse loan has an 11% interest rate, but investors will not have to make monthly payments to pay back the loan. Instead, money would be taken out of the dividends made off of their share until the loan is paid back. After the loan is paid back in full through dividends, the investor would begin to profit off of their investment.
The loan is not reported on your credit and it is not dependent on an individual’s credit score, according to Dillard. Sales of the shares went live in late December.
Dillard said that the timeline for when investors may start receiving cash distributions depends on how quickly the casino and hotel project can become operational and start generating revenue. She added that investors should not expect to see any profit in the first five years of the casino’s operations.
There are limited shares available in each class: 7,500 for the $25,000 investments; 1,000 for the $5,000 investment; 1,000 for the $2,500 investment, and just 500 shares available for the $250 investment.
Shares cannot be sold in the first five years after it is open for business as Bally’s has to commit to its inclusion requirements with the city, according to Dillard.
The information session was touted as a way that Black residents could capitalize off of the $1.6 billion project that will include a hotel, a 3,000-seat theater and a Riverwalk extension to Chicago Ave. The casino is expected to open in September 2026 with the adjoining hotel in September 2027.
After Bally’s won the bid for Chicago’s sole casino license, The TRiiBE reported on the importance of displaced Black residents of the Cabrini-Green neighborhood having involvement in the casino plans and reaping economic benefits.
“Remember when they legalized marijuana a few years ago? We knew that we were the community that was affected the most by it, but we felt that we did not have access to being owners,” Conyears-Ervin said during the informational. “Well, this, ladies and gentlemen, is quite different.”
Conyears-Ervin went on to say how much representation matters in opportunities such as this, adding that the structure of a lower financial risk threshold allows more Black people with the opportunity to experience generational wealth.
Many residents left the information session feeling knowledgeable and encouraged to own part of the upcoming casino.
Roberta Allen, a resident of Chatham, said that based on the information shared, she would gladly invest. Shesees it as a way to build wealth for her family,
“I think they did a very, very excellent job in explaining everything and understanding the risk involved. And it’s a long-term investment, it’s nothing that’s going to turn around quickly,” Allen said.
Auburn Gresham resident Carla Lennan, who said she already invests for a living, said she would also be buying a share of Bally’s.
“It’s so many ways you can invest. I mean, to go from $250 all the way to $25,000, I mean, if you don’t have any money and all you have is 250 and they let you in,” she said. “That’s, like, a no-brainer for me, and then it’s a no recourse loan, so therefore you’re not liable for it if it [the project] doesn’t go through.”
City employees and their family members cannot participate in the shares program nor those who have been convicted of a felony anywhere in the United States. Those who have been convicted of illegal gambling are also prohibited from applying.
The initial public offering is also not limited to Chicago residents. It is open to those in Illinois, New York, Texas and Florida.
“I will say this, our goal is that we have a lot of participation by folks that are in Chicago,” Dillard added. “There’s a desire for as much participation by folks that are in this pot of land area, as much as possible.”
Those interested can visit their website. Investors have up until Jan. 31 to buy shares.
The post Chicago’s Black residents can invest in Bally’s Casino appeared first on The TRiiBE.
