In today’s episode Patrick McKenzie (@patio11) examines a Chicago casino investment, first of its kind within the city limits. Patrick reads from his Bits About Money essay (published January 2025) with additional commentary based on recent developments. The discussion reveals how municipal politics, grievances about national and local economic history, and creative financing intersect for ‘a very Chicago gamble.’

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Full transcript available here:
www.complexsystemspodcast.com/the-landmines-buried-in-the-fine-print-of-chicagos-new-casino-deal/

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Links:

Bits About Money: https://www.bitsaboutmoney.com/archive/chicago-casino-investment-offering/
The Story of Vaccinate CA: https://worksinprogress.co/issue/the-story-of-vaccinateca/
The Conservative Investor: https://www.patreon.com/theconservativeincomeinvestor
Complex Systems interview with Jim McKenzie: https://open.spotify.com/episode/6ocJirzGTStuf0K9ITM21X?si=7HA0RhEOS8GFsA1MlY-EVw

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Twitter:
@patio11

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Timestamps:
(00:00) Intro
(01:43) Chicago has wanted a casino for a long time
(04:55) The stock offering
(10:29) Chicago’s peculiar definition of minority
(14:04) Sponsors: Vanta | Check
(16:26) Reading a complex corporate structure
(20:29) Is this valuation a gift to investors?
(23:20) Capital stack arbitrage
(30:04) The casino will not distribute profits, per se
(32:45) Tax consequences of this offering
(38:34) In conclusion

The landmines buried in the fine print of Chicago’s new casino deal

Complex Systems with Patrick McKenzie (patio11)

The landmines buried in the fine print of Chicago’s new casino deal