A new casino slated to open in the heart of downtown Chicago is being accused of violating U.S. civil rights laws by allegedly preventing White men from investing in the project — a move that has prompted a lawsuit.
Bally’s Chicago is a $1.7-billion dollar casino and resort slated to open in the Windy City’s River West neighborhood in 2026. The expansive complex is projected to be Illinois’ biggest casino, boasting a 500-room hotel tower with a rooftop bar, a riverwalk, thousands of slot machines and a 3,000-seat theater. Bally’s will be the city’s first casino; its bid was selected by then-Mayor Lori Lightfoot in 2022.
As part of the Host Community Agreement (HCA) Bally’s signed with the city of Chicago, the casino committed to 25% minority ownership. The HCA was drafted in accordance with a 2019 state law expanding gambling in Illinois. Currently, in order to take part in the casino’s $250 million initial public offering, one must meet its “Class A Qualification Criteria,” part of which states that an investor must be a “minority or woman.”
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Bally’s Casino is being sued for alleged racial discrimination. (Bally’s Casino)
A minority is defined as “African-Americans, American Indians, Asian-Americans, Hispanics” and other groups deemed by the city to be “socially disadvantaged” including Arab Americans, per the Municipal Code of Chicago.
The Wisconsin Institute for Law and Liberty (WILL) is suing Bally’s Casino and members of the Illinois gaming commission for what they allege is racial discrimination. WILL is representing two would-be investors who say they were denied the ability to take part in the project because of their race — Richard Fisher and Phillip Aronoff — who are part of the American Alliance for Equal Rights, which is also a plaintiff in the case.
The lawsuit alleges that Bally’s is in violation of the Civil Rights Act of 1866, the first Ku Klux Klan Act and years of Supreme Court precedent by preventing White men from buying stock in their company. The suit also alleges that Bally’s is preventing shareholders from transferring shares to people who do not meet “Class A” criteria.
“Making a contract is essential to the rights of citizenship. What Bally’s is doing here is absolutely illegal and has been for decades and decades,” Dan Lennington of the Wisconsin Institute of Law and Liberty told Fox News Digital.
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The casino’s bid was selected by then-Chicago Mayor Lori Lightfoot. (Kamil Krzaczynski/Getty Images)
Chicago attorney Patrick Callahan is not a party to the lawsuit, but he told Fox News Digital he was unable to invest in the project because he is a White man.
“It’s so blatantly discriminatory, I can’t imagine how that could possibly be permissible,” Callahan said.
Callahan, 39, said he first heard about the casino from a realtor he follows on Instagram. He thought it was an exciting investment opportunity and attempted to buy shares in the project. After filling out his personal information on the Bally’s investment portal, he was asked if he met the “Class A” criteria. When Callahan input that he did not, due to his race and gender, he said the portal stated that he could not proceed with his investment.
The message in red appeared if someone pursuing buying shares in the offering didn’t satisfy Class A qualification criteria. (Bally’s Chicago)
“This offering is only available to entities who satisfy Class A Qualification Criteria in accordance with the Host Community Agreement with the city of Chicago,” the portal displayed in red text.
“I assumed that it was more of a guideline than a hard rule… this can’t actually be… but sure enough, this is exclusively available to women and certain minorities,” Callahan told Fox News Digital.
Callahan said that the alleged racial discrimination was far from shocking, given how the city has been run under Chicago Mayor Brandon Johnson, but he was still alarmed.
“It didn’t surprise me as much as it was kind of startling because it was just so blatant… Chicago is a mess, so it doesn’t surprise me,” he said.
WILL’s lawsuit could lead to legal consequences for Bally’s that may even put its casino license in jeopardy, Lennington said.
Chicago Mayor Brandon Johnson. (Reuters/Vincent Alban)
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Bally’s SEC filing stated the terms they agreed to in the HCA could leave them vulnerable to lawsuits from people who don’t meet “Class A” criteria, which would incur “substantial costs” from the casino and “could adversely affect our ability to operate our casinos and could materially adversely affect our business, financial condition and results of operations,” should the HCA be found invalid or unconstitutional.
“The Bally’s Chicago IPO complies with our obligations under the Host Community Agreement with the City of Chicago,” a Bally’s spokesperson told Fox News Digital in a statement.
The Chicago Mayor’s Office and Illinois Gaming Commission did not respond to Fox News Digital’s request to comment.
