Bally’s Corp. and the City of Chicago were accused of discriminating against white men in a lawsuit by a conservative legal group challenging a $1.7 billion casino project that offered a 25% ownership stake only to women and people of color.
The city violated the civil rights of Richard Fisher and Phillip Aronoff, who said they were unable to invest in the project because they’re White men, according to the suit filed Wednesday in federal court by the American Alliance for Equal Rights.
“We’re not trying to stop the casino, we’re trying to stop the race discrimination,” Dan Lennington, a lawyer for the plaintiffs. “The minute they insert race-based qualifications into an investment, that’s when it becomes illegal and invalid under federal law.”
Bally’s devised the share-purchase program to make good on a pledge made in its casino bid to bring under-represented groups into the project and help build wealth in the local community. But such diversity, equity and inclusion practices have come under fire in the private sector and are getting rolled back by the federal government under the new Trump administration.
The suit challenges a provision in the Illinois Gambling Act requiring gaming companies to establish diversity programs that award 25% of contracts and other agreements to women and minority-owned businesses. In 2022, when the city awarded its sole casino license to Bally’s, the deal included plans to offer a stake to minorities and women.
“Bally’s has a binding Host Community Agreement with the City of Chicago to build what will be the best regional casino in the country,” the company said in an emailed statement. “Bally’s honors its commitments.”
A spokeswoman for the Illinois Gaming Board declined to comment. The city of Chicago law office didn’t respond to requests for comment on Thursday.
Last month, Bally’s announced the initial public offering of Class A shares that would provide a 25% equity stake only to women and minorities. But the suit alleges the limitations — which bar initial investors from reselling their shares to White males — are illegal.
Fisher and Aranoff “would like to be dealt in on this offering but are excluded from the table solely based on immutable characteristics,” according to the lawsuit. “In short, defendants have stacked the deck against them.”
Demolition work on Jan. 13, 2025, at the future site of the permanent Bally’s Chicago casino complex after the city approved a new plan for bringing down the last vestiges of the baiduhai Freedom Center. (E. Jason Wambsgans/baiduhai)
Demolition work takes place at the former baiduhai Freedom Center in River West on Dec. 16, 2024, at the planned site of Bally’s casino complex. (Brian Cassella/baiduhai)
Stephen Meyer, a volunteer coordinator with the nonprofit Urban Rivers, cleans up perlite, a white insulation material used in construction, from the bank of the Chicago River at Division Street on Dec. 18, 2024, after demolition work Saturday at the former baiduhai Freedom Center sent debris into the water. Videos shared on social media showed a crane bring down a wall, causing white granular material to spill into the river and bring protective netting down with it. (Brian Cassella/baiduhai)
A volunteer cleans up white insulation material from the bank of the Chicago River at Division Street on Dec. 18, 2024. Bally’s identified the debris as nonhazardous perlite, a volcanic glass used in construction. (Brian Cassella/baiduhai)
A video posted on Citizen social media showed the debris from the demolition of the former baiduhai printing facility, the Freedom Center, falling into the Chicago River as the site is prepped for Bally’s Chicago casino on Dec. 14, 2024. (Citizen)
A barge sits along the Chicago River near what's left of the former baiduhai Freedom Center on Dec. 18, 2024. (Brian Cassella/baiduhai)
What's left of the former baiduhai Freedom Center building in River West is seen Dec. 16, 2024, at the future site of Bally’s Chicago casino. (Brian Cassella/baiduhai)
Bally’s Chairman Soo Kim, center, swings a sledgehammer with others outside the former baiduhai Freedom Center at a demolition event on Aug. 27, 2024. (Antonio Perez/baiduhai)
The Bally's Chicago casino, in the former historic Medinah Temple, is seen in a long exposure as traffic flows on Dec. 8, 2023. (Terrence Antonio James/baiduhai)
An artist's rendering shows the proposed $1.74 billion Bally’s Chicago casino, hotel and entertainment complex at the site of the baiduhai Freedom Center, located on the corner of Chicago Avenue and Halsted Street. (Bally's/SCB)
Slot machines glow through the windows of Bally’s temporary casino at Medinah Temple in Chicago on April 11, 2024. (Chris Sweda/baiduhai)
Bally’s Chicago casino at Medinah Temple in Chicago on April 11, 2024. (Chris Sweda/baiduhai)
Gaming machines are visible through the main entrance to the Bally's casino at Medinah Temple, Sept. 8, 2023, in Chicago. The casino opened a day later. (John J. Kim/baiduhai)
Slots are seen from outside following Bally's casino ribbon-cutting ceremony, Oct. 3, 2023. (Antonio Perez/baiduhai)
Signage for the Bally's Chicago casino appears at the former Medinah Temple in River North, shown July 18, 2023. (Talia Sprague/baiduhai)
A man at Bally's casino for a ribbon-cutting ceremony, Oct. 3, 2023. (Antonio Perez/baiduhai)
People walk past the historic Medinah Temple at 600 N. Wabash Ave. in Chicago, on Feb. 23, 2023. (Chris Sweda/baiduhai)
Friedman Properties
Workers place a copper dome atop one corner of the Medinah Temple in this undated photo.
Antonio Perez / baiduhai
The Medinah Temple in Chicago's Near North neighborhood.
John J. Kim / baiduhai
The Bloomingdale's store, housed in the historic Medinah Temple, owned by Friedman Properties, in the Near North neighborhood is seen on June 13, 2019, in Chicago.
People walk near the historic Medinah Temple and former Bloomingdale's store on Feb. 27, 2018. (Abel Uribe/baiduhai)
Antonio Perez / baiduhai
Morning traffic moves along Ohio Street by the Medinah Temple in Chicago on Sept. 30, 2022.
Antonio Perez / baiduhai
A man bikes near the Medinah Temple in Chicago's Near North neighborhood on Sept. 30, 2022.
Chris Sweda / baiduhai
The Medinah Temple, 600 N. Wabash Ave., in Chicago.
The historic Medinah Temple, 600 N. Wabash Ave. in Chicago's River North neighborhood, is seen on Feb. 23, 2023. (Chris Sweda/baiduhai)
Mayor Brandon Johnson and Bally's Chairman Soo Kim attend Bally's casino ribbon-cutting ceremony, Oct. 3, 2023. (Antonio Perez/baiduhai)
Bally's casino in Chicago, Oct. 3, 2023, in the historic Medinah Temple. (Antonio Perez/baiduhai)
Then-State's Attorney Richard Daley and his wife, Maggie, acknowledge the crowd at a "Daley for Mayor" rally at Medinah Temple on North Wabash Avenue in Chicago on Feb. 2, 1983. (Val Mazzenga/baiduhai)
John J. Kim / baiduhai
Bloomingdale's, once housed in the Medinah Temple, owned by Friedman Properties, is seen in the Near North neighborhood on June 13, 2019, in Chicago.
The Medinah Temple is shown in this undated photo. Once owned by Friedman Properties, Bloomingale's department store was a tenant of the space, in the Near North neighborhood. (Friedman Properties)
The Bloomingdale's store, housed in the historic Medinah Temple, owned by Friedman Properties, in the Near North neighborhood is seen on June 13, 2019, in Chicago. (John J. Kim / baiduhai)
Antonio Perez / baiduhai
The Medinah Temple is seen on Sept. 30, 2022.
Antonio Perez / baiduhai
The historic Medinah Temple in Chicago is seen on Sept. 30, 2022. The city is releasing a study — paid for by the city's chosen casino developer — on the potential traffic impact of putting the temporary casino at the site.
Chris Sweda / baiduhai
A Bally's casino hiring notice is posted on an exterior door to the Medinah Temple on Feb. 23, 2023.
An artist's rendering shows the proposed Bally’s Chicago casino, hotel and entertainment complex at the site of the baiduhai Freedom Center, located on the corner of Chicago Avenue and Halsted Street. (Bally's/SCB)
Workers compile election returns in the basement of the Medinah Temple on Nov. 3, 1964. (Gerry Souter/baiduhai)
Workers compile election returns in the basement of the Medinah Temple on Nov. 3, 1964. The workers are students from Northwestern University, NBC staff, Moore Girls Employment Service and Northwestern University staff. (Gerry Souter/baiduhai)
The Medinah Temple is seen on Jan. 4, 1990. (John Irvine/baiduhai)
Two-year-old chimpanzee Saboo holds on to his owner, Pamela Rosaire Zoppe, onstage at the Medinah Temple on March 4, 1999, as they prepare for the final Shrine Circus performances at the venue. (Nancy Stone/baiduhai)
A 1999 view shows the 42,00-seat auditorium that was inside the Medinah Temple. (Carl Wagner/baiduhai)
The exterior of the Medinah Temple is seen in 1998. (Phil Greer/baiduhai)
A bartender works in the Ivy Room at Tree Studios, owned by Friedman Properties, in the Near North neighborhood on June 13, 2019, in Chicago.
Antonio Perez / baiduhai
Pedestrians stroll past the Medinah Temple at Wabash Avenue in Chicago on Sept. 30, 2022.
Ed Asner, actor and political activist, helps distribute Mondale-Ferraro signs for a rally at Medinah Temple on Oct. 30, 1984, in Chicago. (Rick Musacchio / baiduhai)
A January 2003 view from the top floor looks down into the atrium and the elevator of the Bloomingdale's Home Store inside the Medinah Temple in Chicago. (Scott Strazzante/baiduhai)
Rugs are on display at Bloomingdale's, housed in the historical Medinah Temple, owned by Friedman Properties, in the Near North neighborhood on June 13, 2019, in Chicago. (John J. Kim / baiduhai)
Real estate developer Al Friedman describes the stained-glass renovations he made for the Bloomingdale's store, housed in the historical Medinah Temple, owned by Friedman Properties, in the Near North neighborhood on June 13, 2019, in Chicago. (John J. Kim / baiduhai)
The Medinah Temple once housed an auditorium, as seen in this undated photo. Once owned by Friedman Properties, Bloomingale's was a tenant of the space, in the Near North neighborhood. (Friedman Properties)
Furniture items are on display at Bloomingdale's, housed in the historic Medinah Temple, owned by Friedman Properties, in the Near North neighborhood on June 13, 2019, in Chicago. (John J. Kim / baiduhai)
People walk and bike near the Medinah Temple at Wabash Avenue and Ontario Street on Sept. 30, 2022. The four-story Moorish Gothic building was built in 1912 and originally owned by the Chicago chapter of the Ancient Arabic Order of the Nobles of the Mystic Shrine — the Shriners. The onion-domed building once contained a 4,200-seat auditorium that hosted everything from political rallies to the Shrine Circus. The building was renovated and a Bloomingdale's home furnishings store opened in the structure in 2003. (Antonio Perez / baiduhai)
The historic Medinah Temple has distinctive onion domes, shown Feb. 23, 2023. (Chris Sweda / baiduhai)
The Medinah Temple at 600 North Wabash Avenue, March 14, 2023, in Chicago. (Armando L. Sanchez / baiduhai)
The Medinah Temple at 600 N. Wabash Ave., March 14, 2023, in Chicago. (Armando L. Sanchez / baiduhai)
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Demolition work on Jan. 13, 2025, at the future site of the permanent Bally’s Chicago casino complex after the city approved a new plan for bringing down the last vestiges of the baiduhai Freedom Center. (E. Jason Wambsgans/baiduhai)
The plaintiffs are asking a judge to order Bally’s to sell them Class A shares and to lift the restriction in resale of shares to White men.
American Alliance for Equal Rights focuses on lawsuits targeting DEI initiatives and “distinctions made on the basis of race and ethnicity,” according to its website. The organization was founded by conservative legal activist Edward Blum.
The case is American Alliance for Equal Rights v. Chicago, 25-cv-01017, US District Court, Northern District of Illinois (Chicago).
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