Chicago casino project accused of not allowing white men to invest in plan: ‘Blatantly discriminatory’

A new casino set to open in downtown Chicago is facing accusations of violating U.S. civil rights laws by allegedly excluding white men from investing in the project, leading to a lawsuit.

Bally’s Chicago is a $1.7 billion casino and resort scheduled to open in the River West neighborhood of Chicago in 2026. This massive complex is expected to be Illinois’ largest casino, featuring 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, approved by then-Mayor Lori Lightfoot in 2022. 

As part of the Host Community Agreement signed between Bally’s and the city of Chicago, the casino committed to having 25% minority ownership. This agreement was made in compliance with a 2019 state law that expanded gambling in Illinois. To participate in the casino’s $250 million initial public offering, individuals must meet the “Class A Qualification Criteria,” which includes being a minority or woman.

The definition of a minority, according to the Municipal Code of Chicago, includes African-Americans, American Indians, Asian-Americans, Hispanics, and other groups identified by the city as socially disadvantaged, such as Arab Americans.

The Wisconsin Institute for Law and Liberty has filed a lawsuit against Bally’s Casino and members of the Illinois gaming commission, claiming racial discrimination. The lawsuit represents two potential investors, Richard Fisher and Phillip Aronoff, who were reportedly denied the opportunity to invest in the project based on their race. The American Alliance for Equal Rights is also involved in the case as a plaintiff.

The lawsuit alleges that Bally’s is in violation of the Civil Rights Act of 1866, the first Ku Klux Klan Act, and Supreme Court precedent by restricting white men from purchasing stock in the company. It also claims that Bally’s is preventing shareholders from transferring shares to individuals who do not meet the “Class A” criteria.

“Creating a contract is fundamental to citizenship rights. What Bally’s is doing here is clearly illegal and has been for many years,” said Dan Lennington of the Wisconsin Institute for Law and Liberty in a statement to Fox News Digital.

Chicago attorney Patrick Callahan, not part of the lawsuit, shared his experience of being unable to invest in the project due to being a white man.

“It’s so blatantly discriminatory, I can’t see how that could be allowed,” Callahan expressed.

Callahan attempted to invest in the casino after hearing about it from a realtor on Instagram. However, he was informed on the investment portal that he did not meet the “Class A” criteria due to his race and gender, preventing him from proceeding with his investment.

“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 shared with Fox News Digital.

Callahan noted that while the alleged racial discrimination did not surprise him given the city’s leadership under Chicago Mayor Brandon Johnson, it was still alarming.

“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 added.

Lennington mentioned that WILL’s lawsuit could have legal implications for Bally’s, potentially jeopardizing its casino license.

Bally’s SEC filing acknowledged that the terms agreed upon in the HCA could lead to lawsuits from individuals who do not meet the “Class A” criteria, resulting in significant costs and potentially impacting the casino’s operations and financial standing.

“The Bally’s Chicago IPO complies with our obligations under the Host Community Agreement with the City of Chicago,” stated a Bally’s spokesperson in response to Fox News Digital.

The Chicago Mayor’s Office and Illinois Gaming Commission did not provide a response to Fox News Digital’s request for comment.