A planned $1.7 billion casino and resort, Bally’s Chicago, set to open in 2026, is facing accusations of racial discrimination. The lawsuit alleges that the casino's investment criteria, requiring investors to be a "minority or woman," violates civil rights laws by excluding White men from participating in the project's initial public offering.

As part of a Host Community Agreement (HCA) with the city, Bally’s committed to 25% minority ownership, in line with a 2019 Illinois state law. This agreement defines "minority" as various groups including African Americans, American Indians, Asian Americans, Hispanics, and others deemed "socially disadvantaged" by the city. The Wisconsin Institute for Law and Liberty (WILL), representing two potential investors, argues that this requirement violates the Civil Rights Act of 1866, the first Ku Klux Klan Act, and established Supreme Court precedent. The lawsuit also claims that Bally’s restricts share transfers to individuals meeting these specific criteria.

Bally's Casino is facing a lawsuit alleging racial discrimination. (Bally's Casino)

Dan Lennington of WILL emphasized the importance of contract rights, stating that Bally’s actions are illegal. A Chicago attorney, Patrick Callahan, although not involved in the suit, shared his experience of being denied investment based on his race and gender after attempting to buy shares through Bally's investment portal. The portal displayed a message explicitly stating the offering was restricted to those meeting the "Class A Qualification Criteria."

The casino's bid was selected by former Chicago Mayor Lori Lightfoot. (Kamil Krzaczynski/Getty Images)

The message displayed if an individual did not meet the Class A qualification criteria for investment. (Bally's Chicago)

Callahan expressed his concern over the blatant discrimination while noting his lack of surprise given the current political climate in Chicago. Lennington suggested that the lawsuit could have significant legal ramifications for Bally’s, potentially jeopardizing its casino license. Bally’s SEC filing acknowledges the potential for lawsuits and associated costs due to the HCA's terms. A Bally's spokesperson stated that their IPO complies with the HCA, while the Chicago mayor's office declined to comment on pending litigation, and the Illinois Gaming Commission did not respond to requests for comment.

Chicago Mayor Brandon Johnson. (Reuters/Vincent Alban)