January 31, 2025 3 min read

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Lawsuit Claims Bally’s Chicago IPO Discriminates White Men

The legal claim was field Wednesday by a conservative legal group and two white men from Texas who according to the lawsuit were barred from investing in the project due to their race

The leading gaming and hospitality company, Bally’s Corporation, is in hot water in Illinois after a newly filed lawsuit alleges discrimination against White men for an investment opportunity.

White Men Excluded from IPO Results in Lawsuit

Filed with the US District Court Northern District of Illinois, the lawsuit names Bally’s Corporation and the City of Chicago defendants. Also named as defendants are Bally’s Chicago and several members of the state’s gambling regulator, the Illinois Gaming Board. Plaintiffs American Alliance for Equal Rights, Richard Fisher and Phillip Aronoff accused the defendants of violating the state’s discriminatory law by offering an illegal investment that is open to anyone but White men.

Previously, Bally’s announced its plan for an initial public offering (IPO) to raise $250 million via Class A shares for its Bally’s Chicago property. While the IPO offered investors a chance to own 25% of the company’s future casino property in Chicago, the purchasing process was not open to everyone. “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 plaintiffs wrote.

Due to this restriction, Fisher and Aronoff, the two plaintiffs, cannot invest in this opportunity because they are white males. “They would like to be dealt in on this offering but are excluded from the table solely based on immutable characteristics. In short, Defendants have stacked the deck against them, a hand Defendants cannot play,” the lawsuit reads.

The massive casino project has a price tag of nearly $1.7 billion. Bally’s Chicago would mark the company’s most expensive development.

Plaintiffs Wanted to Invest in the Project but Weren’t Eligible

In their legal claim, the plaintiffs explained that a race-based stock offering is illegal. The conservative legal group, American Alliance for Equal Rights, together with the two plaintiffs, asked the court to recognize the race-based stock offering as illegal and one that is violation of federal civil rights statutes.

Plaintiffs Fisher and Aronoff are interested in and able, ready, and willing to invest in Bally’s Chicago, Inc., but they cannot because of their race,

reads the lawsuit filed against Bally’s Corporation

Per the lawsuit, Fisher is a white male who is a resident of Richmond, Texas. As a retiree, he often invests and was interested in purchasing Class A shares in the project but couldn’t because of his race.

The fellow plaintiff Aronoff is also a Texas state resident but lives in Houston. Similarly to Fisher, Aronoff is also a retired white male who invests regularly and showed interest in the casino project but was barred from investing due to his race.

In their lawsuits, the plaintiffs asked a court to strike down the restriction that is prohibiting them from investing in Bally’s Chicago. They also claim the defendants are liable “for damages, including punitive damages, and an order of specific performance or rescission.”

It is unlikely that the lawsuit to affect the development of the large-scale casino project. Still, it represents a legal hurdle that will likely be resolved in court.

Journalist

Jerome brings a wealth of journalistic experience within the iGaming sector. His interest in the industry began after graduating from college, where he regularly participated in local poker tournaments. This exposure led him to the growing popularity of online poker and casino rooms. Jerome now channels all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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