Lawsuit against Bally’s Illinois investment scheme dismissed after policy revision
A federal lawsuit challenging Bally’s Corporation’s investment offering for its Chicago casino project has been dismissed following the company’s decision to revise the programme’s eligibility criteria.
The lawsuit, filed by Illinois resident Mark Glennon, had alleged that Bally’s initial plan—which reserved investment opportunities exclusively for women and racial minorities—violated the Equal Protection Clause of the Fourteenth Amendment and federal civil rights laws.
In a securities filing dated April 22, Bally’s formally removed the race- and gender-based requirements from the offering, opening participation to all eligible Illinois residents regardless of demographic identity. The change prompted the dismissal of the lawsuit without prejudice on May 1.
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A challenge to “quota-based” investing
The original investment programme, tied to Bally’s $1.7 billion plan to build Chicago’s first full-scale casino, was designed under a Host Community Agreement (HCA) with the City of Chicago. It reserved 25 percent ownership for women and racial minorities, a provision that became a flashpoint for legal controversy.
Glennon’s lawsuit, filed in January by the Liberty Justice Center, claimed that the city’s race- and sex-based criteria amounted to unconstitutional discrimination, denying him investment opportunity solely because he did not qualify under the defined categories.
“No one should be excluded from participating in our economy on the basis of their race or sex” said Reilly Stephens, Senior Counsel at the Liberty Justice Center. “We are glad to see Bally’s new offering allows the people of Chicago to invest in one of the city’s premier projects without discrimination or exclusion.”
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Revised terms aim for inclusivity without legal risk
Under the updated structure, Bally’s maintains a preference for local investors from Chicago and Illinois but eliminates explicit demographic quotas.
Bally’s chairman, Soo Kim, told Crain’s Chicago Business that while the original intent of the HCA’s provisions was to promote diversity in ownership, the approach proved legally and practically untenable.
Casino expected to boost Chicago’s economy
The Chicago casino, approved by the Illinois Gaming Board, is expected to generate major economic activity and tax revenue earmarked for the city’s underfunded pension systems.
Despite the lawsuit’s dismissal, legal experts note that the case could influence future public-private partnerships seeking to include diversity goals in economic development projects.
With the lawsuit resolved, Bally’s continues preparations for the casino’s construction, which is anticipated to deliver thousands of jobs and millions in new revenue for the city.
