CASE NAME

American Alliance For Equal Rights et al v. Chicago City et al

Overview

The American Alliance for Equal Rights (AAER) is challenging a requirement for investors in the Bally's Chicago Casino to be from a minority background if individuals, or for entities, to have at least 25% minority or female ownership.

Details

The city of Chicago made a deal with the developers building the casino, requiring them to ensure 25% minority ownership, following state and city laws. When the casino launches its initial public offering (IPO)—the first time its shares are sold to the public—only investors from specific racial and ethnic minority groups can buy Class A shares. AAER argues this violates Section 1981 because it excludes white investors from this opportunity.

On April 4, 2025, Defendants—the City of Chicago, the Illinois Gaming Board, and Bally’s Casino— each filed separate , arguing that Plaintiff lacks to sue and has failed to bring valid claims against them.

On June 6, 2025, both parties settled after Defendants removed the minority requirement from the IPO.

Court

U.S. District Court, Northern District of Illinois

Status

Filed January 29, 2025 | Settled

Further details about the settlement were not publicly disclosed.