The lawsuit, filed by the American Alliance for Equal Rights in the US District Court in Chicago, targets Bally’s, the City of Chicago, and the Illinois Gaming Board.
The lawsuit argues that this approach unlawfully excludes other interested investors based on race.
The plaintiffs in the case include two white Texas men, Richard Fisher and Phillip Aronoff, who claim they are being excluded from investing in Bally’s Chicago casino solely based on race.
The legal dispute centers on a 2019 Illinois law that authorised a casino in Chicago and required the licence holder to make “best efforts” to ensure that at least 25% of its ownership is held by individuals from diverse backgrounds.
Bally’s later expanded upon this commitment in an agreement with the City of Chicago, requiring that a quarter of the casino’s equity be owned by minority individuals and minority-controlled businesses.
The complaint states that “this race-based stock offering is illegal” and calls for the court to declare the programme unconstitutional.
Bally’s defends its plans
Bally’s has defended its investment programme, asserting that it aligns with the commitments made in its agreement with the city.
The IPO proceeds are intended to help finance Bally’s permanent $1.7bn casino and resort, scheduled to open in September 2026.
However, Bally’s has acknowledged in its prospectus that the minority-focused investment programme could face legal challenges.
The company warned that if courts rule the programme unconstitutional, it could impact its agreement with the city and potentially affect casino operations.
The American Alliance for Equal Rights, the organisation behind the lawsuit, is linked to the group that successfully challenged affirmative action in college issions before the US Supreme Court in 2023.
The case adds to a growing national debate over diversity, equity, and inclusion (DEI) initiatives.Dan Lennington, deputy counsel for the Wisconsin Institute for Law & Liberty, which is representing the Alliance, stated that the organisation is committed to eliminating affirmative action and DEI programmes across various sectors.
The lawsuit also comes amid broader political shifts, with President Donald Trump vowing to dismantle DEI policies at the federal level.
Bally’s to get new boost from Kambi
In spite of the negativity surrounding the IPO, there was some good news for Bally’s this week.
The Nevada Gaming Commission granted approval on Thursday for gaming partner Kambi Group to offer its B2B sports betting services to casinos across the state.
Kambi is set to begin operations in Nevada with a trial run at Bally’s Lake Tahoe.
Kambi first entered the US market in 2018 by securing licences in New Jersey and Pennsylvania. The company provides a comprehensive software platform that includes a front-end interface, odds compilation, customer analytics, and risk management tools.
Currently, Kambi operates in 15 US states and one Canadian province, delivering online, mobile, and retail betting solutions to 45 different operators. The company employs more than 1,000 people.
Kambi CTO Kris Saw stated that the company is in the process of submitting its retail sports betting platform for review by the Nevada Gaming Control Board’s technology division.
It is currently undergoing testing with GLI, and Kambi hopes to complete this phase within the first half of the year. If everything goes as planned, a field trial with Bally’s could begin by July. Kambi already partners with Bally’s in several other states.
Saw explained that Kambi provides software solutions for risk management and probability calculations, while casinos retain control over financial risk, liabilities, and operational decisions for both retail and online sportsbooks.
Kambi’s system operates independently and does not manage player s or financial transactions. Instead, Bally’s uses its own system for these functions.
When a bet is placed, Kambi assesses the wager and offers a recommendation on whether Bally’s should accept it.
