Standard General, a hedge fund led by Bally's Chairman Soo Kim, will buy the remaining shares of the company, which will keep it publicly traded.
The buyout was announced as Bally's works to build a new casino along the Chicago River. It is also currently operating a temporary casino at the Medinah Temple in River North.
Two weeks ago, the company revealed new renderings of the planned casino after saying it secured funding for the complex. The site plan includes a 500-room, 34-story hotel tower at the former Tribune Publishing site, pending approval from the Chicago Department of Planning and Development.
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The Illinois Gaming Board said they are aware of the buyout and are reviewing it.
Bally's told the Chicago Tribune the Chicago casino plans remain unchanged.