Title: Bally's Chicago Settles Lawsuit Over Exclusive IPO, Revises Strategy
Bally's and Chicago Settle Lawsuit Instigated by Excluded White Males in IPO
Posted on: June 9, 2025, 05:53h.
Last updated on: June 9, 2025, 05:53h.
Author: Todd Shriber @etfgodfather
Categories: Financial, Gaming Business, Mergers and Acquisitions
Bally's and the city of Chicago have settled a lawsuit, put to bed by conservative legal group the Wisconsin Institute for Law & Liberty, representing plaintiffs Phillip Aronoff and Richard Fisher. These two white men couldn't participate in Bally's Chicago IPO due to its original terms that allegedly discriminated based on "immutable characteristics".
The settlement, reached last Friday in US District Court for the Northern District of Illinois, dismissed all claims with prejudice. Financial terms remain confidential, but it's a step towards progress for these investors, who simply sought a shot at backing Chicago's first casino.
New Angle on Bally's Chicago IPO Approach
Recall, the initial plan for the Bally's IPO, as part of the host city agreement, was to sell 25% of the first gaming venue within Chicago city limits. However, the offering was initially confined to minorities and women. This move stirred some controversy among investors, who were left out due to their race or gender.
The IPO's delay in March, when the SEC didn't declare it effective, spurred speculation that the proposal might become a casualty of President Trump's anti-DEI (diversity, equity, and inclusion) push. In response, Bally's revised its prospectus in April, eliminating the minority/women-only clause.
Now, Bally's has softened its stance, revealing its desire for the share sale to be accessible to a wide pool of investors, albeit with a preference for Chicago and Illinois residents. This approach should help the operator meet the 25% minority ownership clause without resorting to xenophobic tactics.
The Revamped Bally's Chicago IPO
At first, Bally's hoped to rake in $250 million to fund its $1.7 billion integrated resort project in Chicago. When it floated this plan in May 2023, DEI was all the rage in Corporate America. However, with recent developments, DEI discussions have dialed back significantly across industries.
As for the revised Bally's Chicago IPO, details are still under wraps. However, it's expected to follow Bally's new approach—welcoming a broader range of investors while giving preference to Chicago and Illinois residents.
Fun fact: In the original IPO plan, participants would have needed a minimum investment of $25,000, which could have been met by buying 500 shares at $250 each, 1,000 at $2,500 each, 1,000 at $5,000, or 7,500 shares for $25,000.
While the settlement marks a significant resolution to the lawsuit, Bally's faces other challenges, such as construction delays and declining revenue at its temporary casino location. Stay tuned for further updates on this developing story.
[1] Bally's Chicago IPO Settlement: What It Means for Investors[2] Bally's Chicago IPO Strategy: Embracing Diversity or Facing Legal Action?[3] Bally's Chicago Construction Delays: What's Going Wrong?[4] Bally's Chicago IPO Prospectus: What You Need to Know Before Investing
- The settlement of the lawsuit involving Bally's Chicago IPO has opened up the opportunity for commercial gaming investment to a wider pool of investors, particularly those in the Midwest region, who were previously left out due to the initial terms that allegedly discriminated based on immutable characteristics.
- The financial terms of the settlement between Bally's and the plaintiffs remain confidential, but it is considered a step towards progress in the finance and investing landscape, as it addresses issues of discrimination and inclusivity in the regional news.
- Bally's has revised its strategy for the IPO, aiming to make the share sale accessible to a broad range of investors, with a preference for Chicago and Illinois residents, as part of their efforts to meet the 25% minority ownership clause without engaging in discriminatory practices.
- The revamped Bally's Chicago IPO is expected to follow a strategy that welcomes a diverse group of investors while prioritizing those residing in Chicago and Illinois, a move that aligns with the company's business model and real-estate interests in the city.
- The settlement resolution in the lawsuit has significant implications for investing in commercial gaming, as it sets a precedent for fair and inclusive practices in the industry, amplifying the importance of legal compliance and diversity, equity, and inclusion in finance and business.
