I refuse to enter that gaming establishment unless there's a BLM statue in the front lobby! Oh wait...it's not built yet?
Lawsuit puts Bally's agreement in question
By Dan Primack and Carrie Shepherd, Axios News
Feb 10, 2025
It's been nearly three years since Bally's won the right to build a casino and entertainment hub in River West, but some of the IPO financing now is being threatened by a civil rights lawsuit.
Why it matters: The 25% equity stake offered to women and minority investors last month is part of Bally's Host Community Agreement with the city, and losing the lawsuit could jeopardize that agreement.
Between the lines: This might be a blessing in disguise for both the company and the city, as the temporary casino has fallen short of projections and Bally's is seeking a tax break that isn't expected to coast through City Council.
Bally's credit rating has been repeatedly downgraded after signing the Chicago deal, and now the company is in the process of being acquired.
Driving the news: An anti-affirmative action group this month sued both Bally's and Chicago, on behalf of two white men it claims were illegally prevented from investing in the casino.
In short, the complaint alleges that the investor qualifications are racially discriminatory.
The plaintiff has a track record of legal success, most notably the landmark Supreme Court case that struck down affirmative action in higher education.
Zoom in: If the lawsuit is successful, Bally's may be able to fulfill the agreement by withdrawing the IPO and trying to find a qualified private equity investor.
But the more likely result is that it will be in breach of its agreement with Chicago, which then must decide on whether or not to enforce this clause and terminate the entire deal.
Reality check: Neither Bally's nor the city has given any public indication they are planning to walk.
What they're saying: "Bally's honors its commitments," a Bally's Chicago spokesperson tells Axios. "The Bally's Chicago IPO complies with our obligations under the Host Community Agreement with the City of Chicago."
"We fully intend for Bally's to meet its full commitment as relates to that [the HCA] and we are going to continue working towards the construction of the permanent casino … to realize the revenue as well as the economic benefits that the property brings," Chicago's chief operating officer John Roberson said.
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