After the blockbuster ruling of the Supreme Court finally barring the use of race in college admissions, much of the attention has shifted to the use of racial quotas and set asides by corporations. One such case is developing in Chicago where Bally’s Casino is being sued for barring white investors to meet a 25 percent minority ownership commitment with the city. The lawsuit could make Bally’s slogan come true as “the Center of the Action” on the new round of affirmative action cases.

Bally’s is building a $1.7 billion casino and resort that will open in the River West neighborhood in 2026. It will be the state’s largest casino, with a 500-room hotel tower and a 3,000-seat theater. However, as part of the Host Community Agreement, Bally’s committed to 25% minority ownership. The agreement reflects state law and requires investors to meet its “Class A Qualification Criteria,” part of which states that an investor must be a “minority or woman.”

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 argues that Bally’s is violating the Civil Rights Act of 1866, the first Ku Klux Klan Act and the recent cases barring affirmative action in educational institutions.

Bally’s is caught between a rock and a hard place in this controversy. In its SEC filing, the company noted that the HCA could expose it to lawsuits and force it to incur “substantial costs.”

The Biden Administration was found to be engaging in unconstitutional racial discrimination in set asides for grants and other benefits.

The timing could not be worse for the company. The Trump Administration opposes such race-based set-asides and will likely support the challengers if this is litigated to the Supreme Court.

Here is the complaint: Bally’s Casino Complaint