Bally’s, Chicago Settle Lawsuit Over Minority-Only Casino Investment

Bally's Chicago casino and the city of Chicago settled a federal lawsuit brought by two white men and the conservative legal group American Alliance for Equal Rights, challenging an initial public offering (IPO) that restricted ownership stakes to women and people of color. The original offering, part of a host community agreement to ensure 25% minority ownership, was deemed discriminatory and led to the lawsuit claiming exclusion based on immutable characteristics. Following the lawsuit, Bally's scrapped the minority-only investment requirement and expanded the IPO to investors of all backgrounds, although it remains contractually obligated to meet the 25% minority ownership threshold. The settlement dismissed all claims with each party bearing its own costs, and financial terms were not disclosed. Conservative advocates called the resolution a victory against race-based investment restrictions, while Bally's and city officials declined detailed comment. The case underscores ongoing legal and political debates over diversity, equity, and inclusion initiatives amid the Trump administration's efforts to challenge such programs.