CHICAGO — Bally’s Corporation has formally settled a federal lawsuit over its now-abandoned plan to reserve Chicago casino shares exclusively for minority and female investors, a policy that faced legal and political blowback as national scrutiny over diversity-driven mandates intensifies.
Initial Lawsuit Challenged Equity Plan
The lawsuit, filed earlier this year by the conservative legal group American Alliance for Equal Rights, represented two white men from Texas — Richard Fisher and Phillip Aronoff — who claimed they were barred from investing in Bally’s Chicago casino “based on immutable characteristics.”
The original terms, laid out in a community agreement with former Mayor Lori Lightfoot’s administration, required 25% of investor shares be held by “socially disadvantaged” individuals — including women and people of color. The move aimed to promote economic equity in one of the city’s most high-profile developments: the $1.7 billion casino complex planned for 777 W. Chicago Ave.
Bally’s Scraps Equity Rule, Faces Delays
As pressure mounted under the Trump administration’s ongoing rollback of diversity, equity, and inclusion (DEI) initiatives, Bally’s dropped the race-based investor condition this spring. The company’s stalled Initial Public Offering, initially valued at $250 million, was subsequently opened to investors of all backgrounds — though still with preference for Chicago and Illinois residents.
The terms of the legal settlement, filed in U.S. District Court last week, were not made public. The City of Chicago and the Illinois Gaming Board, both named in the lawsuit, declined to comment.
Attorney Dan Lennington from the Wisconsin Institute for Law & Liberty, which filed the suit, called the reversal “a win for fairness,” stating:
“Bally’s illegal and divisive investment plan is dead.”
Casino Project Faces Broader Setbacks
The legal issues are only part of Bally’s ongoing casino development woes. The company recently had to revise its construction layout to avoid damage to city water mains, and earlier this year, a demolition mishap spilled debris into the Chicago River, pausing work temporarily.
Adding to the turbulence, a waste contractor with alleged mob ties was reportedly operating at the casino site — leading state regulators to halt activity again just last month.
Meanwhile, returns at the temporary Bally’s casino at Medinah Temple have disappointed city budget planners. The company’s prospectus warns potential investors that shares are “highly risky and speculative.”
What Happens Next?
While Bally’s no longer limits its investor pool based on race or gender, the company is still contractually obligated to meet the 25% minority stake requirement under its original deal with the city. How that will be enforced or monitored going forward remains uncertain, particularly as the U.S. Securities and Exchange Commission has yet to approve the IPO.
The permanent Chicago casino is expected to open by September 2026, though delays have pushed timelines repeatedly.
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