CHICAGO — Bally’s Chicago casino project, a $1.7 billion development poised to become the state’s largest gambling and hotel complex, has reached a legal settlement following a lawsuit alleging discrimination against white men in its investor program.
The controversy stems from the casino’s Host Community Agreement (HCA) with the City of Chicago, which required at least 25% of equity ownership to be held by women and minority investors — a clause that critics say explicitly excluded white men from participation in the project’s $250 million pre-IPO equity round.
The casino has now agreed to pay an undisclosed sum in a settlement, as confirmed by Fox News.
Details of the Host Community Agreement
Documents from the casino’s offering include a section titled “Minority and Women Ownership Provisions,” which defines “minority” as any individual identifying as African-American, Hispanic, Asian-American, or Native American — or a woman of any race.
Under the HCA:
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25% of the project equity must be held by minority individuals or minority- and women-owned businesses.
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40% of Board seats were to be reserved for minorities.
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Applicants to the investor program were required to certify that they met these criteria to qualify.
One excerpt in the investor materials stated:
“This offering is only available to entities who satisfy the Class A Qualification Criteria in accordance with the Host Community Agreement with the City of Chicago.”
These provisions formed the basis of the complaint, which alleged that the terms amounted to racial and gender exclusion, violating equal protection laws and federal civil rights statutes.
Casino Developer’s Defense & Settlement Outcome
Bally’s and city officials defended the program as a means to boost economic participation among underrepresented groups, in line with diversity goals outlined in the City of Chicago’s development framework.
Still, the lawsuit alleged that white male investors were categorically barred, even if they were long-standing Illinois residents or experienced businesspeople.
Rather than continue litigation, Bally’s chose to settle the claims out of court. As of now, the amount paid and exact terms of the agreement remain confidential.
Project Timeline and Public Reactions
The Bally’s casino project is expected to:
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Cost $1.7 billion
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Feature a 500-room hotel tower
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Include a massive gambling floor, entertainment venues, and retail space
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Become the largest casino development in Illinois
Critics of the original agreement have called the exclusionary ownership model “reverse discrimination,” while proponents argue it’s a necessary corrective to long-standing economic disparities.
Social media reaction has been divided, with some applauding the lawsuit’s outcome and others defending the original intent of the equity carveout.
Do you believe public-private partnerships should include ownership quotas based on race or gender? How should Chicago balance equity with open investment?
Share your thoughts — and follow all city development updates and business legal battles at ChicagoSuburbanFamily.com.
