Chicago City Wire

Bally’s Corporation has settled a federal lawsuit over race- and gender-based investment terms tied to its $1.7 billion Chicago casino project—but the company says it will still meet the City of Chicago’s mandate requiring 25% minority ownership.

The lawsuit, filed by the American Alliance for Equal Rights (AAER) on behalf of Richard Fisher and Phillip Aronoff, who are both caucasian men, alleged that the casino’s $250 million initial public offering (IPO) was discriminatory because it restricted participation to “people of color” and “women.”

Although the terms of the settlement remain confidential, both AAER and Wisconsin Institute for Law & Liberty (WILL) have praised the outcome as a major legal victory against what they described as unconstitutional discrimination. 

“It’s long overdue to end this racial discrimination in America and AAER stands ready to challenge similar programs wherever they exist,” AAER’s Edward Blum said in a press release. “We are incredibly pleased with the outcome in this case.” 

The plaintiffs, represented by WILL, argued that the IPO violated federal civil rights laws by excluding white male investors solely on the basis of race and sex. 

“This race-based stock offering is illegal,” WILL wrote on its website. 

The lawsuit, along with public backlash, contributed to the U.S. Securities and Exchange Commission’s decision not to approve the IPO in its original form, prompting Bally’s to refund deposits to approximately 1,500 investors.

Dan Lennington, Deputy Counsel for WILL, represented AAER in the case. 

“Bally’s illegal and divisive investment plan is dead,” Lennington said in a press release. “From the beginning, this raised serious legal and ethical concerns.” 

Citing the 1866 Civil Rights Act, the lawsuit sought to open the investment opportunity to all individuals regardless of race or gender.

The lawsuit, along with public backlash, contributed to the U.S. Securities and Exchange Commission’s decision not to approve the IPO in its original form, prompting Bally’s to refund deposits to approximately 1,500 investors.

In response to the legal challenge, in April Bally’s amended its IPOto eliminate race- and gender-based eligibility criteria, instead giving preference to residents of Chicago and Illinois. 

Meanwhile, the City of Chicago continues to support the project, which is scheduled to open in September 2026. Bally’s initially limited the offering to comply with a requirement in its host agreement with the City of Chicago mandating that 25% of the casino be owned by minorities or minority-controlled businesses. That 25% ownership requirement still stands, but Bally’s says it will meet it through other means outside the IPO.

“This program allows multimillionaires who are racial minorities and women to invest in this new gambling venture but excludes all white men, including those of modest or working-class backgrounds,” Blum said when the complaint was initially filed in January. “This marks a new low in race and sex discrimination.”

Despite the settlement, Bally’s may still face legal costs stemming from the ongoing fallout. 

The $1.7 billion Bally’s Chicago casino is being built on a 30-acre site and will include a 3,000-seat theater, approximately 3,000 slot machines, hundreds of table games, VIP gaming areas, restaurants and a hotel.

Bally’s is not the only casino company recently accused of discriminating against white individuals.

In a March video released by James O’Keefe’s OMB, Albie Velarde, Director of Casino Marketing, admitted to discriminating against whites in hiring practices.