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