PROVIDENCE – Bally’s Corp. was selected Thursday by Chicago Mayor Lori E. Lightfoot as the preferred builder to construct and operate that city’s first casino, the same day the company rejected a takeover proposal from Standard General LP, its largest shareholder.
Bally’s, which owns Rhode Island’s two casinos, Bally’s Twin River Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel, will now build a $1.7 billion casino, hotel and entertainment venue at the 30-acre Chicago Tribune Publishing Center along the Chicago River.
It will include 3,400 slots; 170 table games; 10 food and beverage venues; a 500-room hotel tower with rooftop bar; a 3,000-seat, 65,000-square-foot entertainment center; a 20,000-square-foot exhibition, outdoor music venue; and outdoor green space, including a public river walk with a water taxi stop.
“Our vision is that Bally’s Chicago will be of the people, by the people and for the people of Chicago. Chicago is a unique and vibrant city, deserving of a world-class gaming and entertainment destination that drives the local economy, supports local labor, creates multigenerational wealth for minority investors, and showcases the best of what the city has to offer,” said Soo Kim, chairman of Bally’s Corp.’s board of directors. “We look forward to continuing to work collaboratively with the City Council and various city departments, the CFL [Chicago Federation of Labor], the Illinois Gaming Board and all of our valued community partners on this exciting endeavor.”
The project is expected to generate more than $800 million in stabilized gaming revenue on an annual basis. The facility will create more than 3,000 annual construction jobs and 3,000 permanent jobs upon completion of the project, according to a news release.
Also Thursday, a special committee of the Bally’s board of directors rejected a $2 billion takeover from Standard General LP, its largest shareholder.
The New York-based investment firm submitted a letter to Bally’s board of directors on Jan. 25 that it would pay $38 a share – nearly 30% more than the closing price of $29.27 on the New York Stock Exchange that day, for shares it did not already own.
The casino company’s board of directors determined Thursday that Bally’s should pursue initiating a cash tender offer for its shares. It is anticipated that the tender offer will involve $300 million to $500 million, and will be structured in a Dutch auction format.
“While we are of course disappointed with the outcome of the discussions of our proposal, as we said from the outset, we intend to remain a supportive, long-term investor in the company,” said Kim, who also serves as a managing partner at Standard General.
Standard General holds nearly 20% of Bally’s shares. The hedge fund’s founder and managing partner, Kim, has been chairman of Bally’s board of directors since 2019. After Standard General, the top 10 largest shareholders of Bally’s stock are investment funds and a mutual fund that hold a combined 23% of the shares.
