Chicago City Hall and casino operator Bally's have been hit with two anti-white discrimination lawsuits accusing them of illegally blocking white investors from buying in on Bally's efforts to build a new casino in Chicago.
On Jan. 29, the American Alliance for Equal Rights joined with two named plaintiffs, identified as Richard Fisher, of Richmond, Texas, and Phillip Aronoff, of Houston, to file suit in Chicago federal court.
The lawsuit marks the third filed in Chicago federal court by AAER against governments in Illinois over anti-white racial discrimination.
Then, on Jan. 30, the Liberty Justice Center filed a lawsuit, as well, on behalf of Chicago conservative commentator Mark Glennon.
Glennon is the founder and executive editor at the online conservative commentary and news organization, Wirepoints.
Both lawsuits accuse the city of Chicago and Bally's of essentially the same offense: Intentionally blocking white people from investing in the new Chicago casino project.
“Chicago’s government has blatantly violated the Fourteenth Amendment’s Equal Protection Clause by requiring a private business to enforce discriminatory provisions under threat of severe financial loss,” said Reilly Stephens, senior counsel at the Liberty Justice Center, who is representing Glennon in his legal action.
“Ultimately, the city has created a racial classification requirement that cannot withstand constitutional scrutiny. We urge the court not only to strike it down, but also order Chicago’s government to never again enact such a discriminatory quid pro quo development agreement.”
The lawsuits specifically take aim at Bally's creation of a $250 million initial public offering (IPO) for its new Chicago casino operating company.
Bally's was selected by the city of Chicago to construct and operate the new casino in 2022. It would be the first to open within Chicago's city limits.
Under the proposal, the casino would cover 30 acres, including about 3,000 slot machines, 173 table games and VIP gaming areas, in addition to a 500-room hotel, 3,000-seat theater and six restaurants.
The total project has been estimated to cost more than $1.7 billion.
However, in selecting Bally's, Chicago City Hall required Bally's to agree to a so-called Host Community Agreement (HCA). Among other terms, the HCA imposed a series of racial and sex-based hiring and ownership quotas on the new Chicago casino operating company, in the name of promoting so-called equity and diversity.
The HCA required Bally's to agree to impose the quotas on every aspect of the project. This particularly included a requirement that the casino be 25% "minority owned," have a board that includes 40% "minorities," and employ a casino workforce that is at least 60% "minorities."
The HCA was signed in June 2022 under then-Mayor Lori Lightfoot. The agreement has remained in place under current Mayor Brandon Johnson.
According to the complaints, to meet the minority ownership goals, Bally's and Chicago City Hall restricted investment opportunities only to investors who could meet Chicago's "minority" classifications.
The lawsuits assert this resulted in the investment opportunity being illegally closed to white investors.
According to court documents, the IPO was also further restricted, only open to residents of four states: Illinois, Texas, New York and Florida.
"... This offering is not open to everyone," the AAER states in its complaint. "This investment opportunity is only for 'people of color' and 'women.' White males are ineligible. Moreover, initial investors cannot even resell their shares to white males."
The AAER complaint further notes that in investment disclosures, Bally's itself recognized the city's racial and sex-based quote rules could be illegal and "may result in lawsuits against us and the City of Chicago by persons that do not meet the (city's minority quota ownership requirements.)"
Bally's further warned the lawsuits could result in "substantial costs." An adverse ruling against Bally's and Chicago could "adversely affect our ability to operate our casinos and could materially adversely affect our business, financial condition and results of operations," Bally's further warned.
According to the lawsuits, the three individual plaintiff investors all submitted applications to invest and were denied, solely because they are white males.
According to the complaints, the IPO is scheduled to close Feb. 7.
The lawsuits are seeking court orders blocking Chicago and Bally's from continuing with the IPO and from excluding investors based on race and gender.
The AAER complaint also seeks unspecified financial damages, including punitive damages against Bally's and the city.
AAER is represented in the action by attorneys Daniel P. Lennington and Skylar Crow, of the Wisconsin Institute for Law & Liberty, of Milwaukee.
“Bally’s Casino should put this illegal investment on hold immediately," said Croy, in a statement issued by the Wisconsin Institute for Law & Liberty. "Withholding investment opportunities based on race is reckless and threatens the entire development. We are seeking a simple solution: the same investment should be open to all, regardless of race.”