Bally’s (NYSE: BALY.T) aims for Bronx residents to engage economically in its planned casino hotel in the New York borough. 

If the regional casino operator secures one of the three downstate licenses that New York regulators have not yet issued, it could offer up to 10% of the venue to Bronx residents, according to Standard General Chairman Soo Kim in an interview with The New York Post. Kim established Standard General, the hedge fund that recently purchased Bally’s.

"Customers could be able to invest as little as $250 and get leverage from the Bally’s Foundation, so that if the casino performs well they can make many multiples of their money,” according to The Post.

In 2023, the regional casino operator from Rhode Island obtained the leasing rights to the golf course previously called Trump Golf Links at Ferry Point in the Bronx, aiming to ultimately develop an integrated resort on the site. The gaming firm allegedly disbursed $60 million to the Trump Organization — the ex-president’s commercial entity — to obtain those rights. 

Bally's Bronx Wager Resembles Chicago Strategy 

Bally's intention to possibly sell shares in its planned Bronx casino resembles a strategy the operator aims to pursue in Chicago, although there may be notable differences as well. 

In the Windy City, Bally’s intended a $250 million initial public offering (IPO) for its forthcoming permanent casino hotel, but that offering has faced challenges. These consist of legal issues arising from the fact that the IPO permitted involvement from almost all individuals except white men. 

Last month, the Securities and Exchange Commission (SEC) did not approve the offering, forcing Bally’s to rethink its strategy. It’s uncertain whether the demographic factors related to the offering caused the regulatory delay, but the IPO is included in its agreement with the city of Chicago. The Post did not indicate whether the Bronx proposal would include comparable racial conditions. 

Bally’s Chicago IPO has a minimum investment threshold of $25,000 and has faced criticism from parts of the investment community for attracting investors who couldn’t manage that expense with a loan at an 11% interest rate. That would prevent investors from getting dividends until the loan has been paid back. 

Bally’s Bronx Casino Not a Guaranteed Success 

Eleven proposals have been made for three casino licenses in the New York City area, indicating that competition is intense. Heightening that intensity is the belief that MGM’s Empire City Casino in Yonkers and Genting’s Resorts World New York in Queens are likely candidates for two of the permits. 

Regarding Bally’s New York plans, the site intended for the gaming venue is currently designated as parkland, which means lawmakers must enact legislation to change that designation. At present, there’s no interest in pursuing that. 

Kim told The Post  “if we can’t get alienation done, we can’t get a casino license.”