Bally's Chicago IPO Dispute Resolved in Favor of Legal Group
Title: Bally's Cashes Out on Racially-Restricted IPO: Legal Eagles Squeeze Out Exclusion of White Men
Posted: May 2, 2025, 03:31h
Last Updated: May 2, 2025, 03:31h
Author: Todd Shriber @etfgodfather
Categories: Financial, Gaming Business, Mergers and Acquisitions
The Conservatives' Trophy in the Battle Against Discrimination: Glennon v. Bally's
In a stunning victory for the Liberty Justice Center (LJC), a legal group championing the rights of white men, Bally's (NYSE: BALY.T) and the city of Chicago have revised their ambitious casino IPO plans. Originally intending to exclude white males from the offering, the revised strategy now promises equal opportunities to all Chicago residents.
LJC heralded this update as a "significant victory" because it marked the deletion of the intrusive requirement that IPO purchasers identify as either a woman or a minority. This triumph comes following the updated securities filing dated April 22, consequently ensuring an open investment landscape for the people of Chicago, free from racial or gender biases.
Origin of the Controversy: Bally's Chicago IPO in a Nut Shell
Initially, Bally's sought to sell a 25% stake in their first casino in Chicago city limits - a prime opportunity. However, the offering initially appears to have been a disastrously ill-conceived move as it remained confined to specific ethnic and gender groups.
The lucrative casino project attracted attention for the controversial nature of the offering. The initial plan sparked lawsuits, especially from groups such as LJC and white rights advocates who wholly considered it a discriminatory practice.
Smart Move or Last-Minute Panic? You Decide
The revised prospectus filed with the Securities and Exchange Commission (SEC) signaled the culmination of Bally's apparent cognitive dissonance. The gaming firm previously warned of the looming potential for costly and lengthy litigation that the non-inclusive offering could necessitate. Some have speculated this may have contributed to Bally's decision to change their strategies.
Berated as one of its most expensive projects to date, the casino in Chicago's River West neighborhood has stirred controversy since former Mayor Lori Lightfoot (D) named Bally's the winner of the city's sole casino permit three years ago.
The project's progress has been sluggish, with almost two years passing since Bally's first filed the S-1 for the Chicago IPO. In March, the offering was delayed as the SEC failed to declare it effective.
In the Words of the Victor: Reilly Stephens, Senior Counsel at LJC
"We should never exclude people from our economy based on race or gender," said Reilly Stephens, senior counsel at the Liberty Justice Center. "We're excited to see that Bally's new offering allows all Chicago folks to buy stock in a major project, without the old, harmful discrimination."
The Threat of Legal Action Remains
Despite the concession to open up the Chicago IPO to all residents, the gaming company may still face steep challenges in the form of lingering legal battles.
In its initial S-1, Bally's cautioned investors that alterations to or termination of its Host City Agreement with Chicago could potentially lead to losing their license. At the time of this writing, the custody of this precarious scenario remains elusive, and the gaming company and city continue to navigate the Gray Recess of the Glennon case.
"With the revised IPO, our objective of removing discriminatory provisions from the public offering has been accomplished," the LJC declared. "Our next steps will involve the formal dismissal of the case and continuous advocacy for equal protection under the law."
[1] Wisconsin Institute for Law & Liberty
[2] Glennon v. Johnson
[3] Liberty Justice Center
[4] SEC.gov
- Bally's, in response to legal pressure from the Liberty Justice Center (LJC), revised their plans for a casino IPO in Chicago, promising equal opportunities to all residents.
- The LJC celebrated this change as a significant victory, marking the deletion of racial and gender bias requirements in the investment landscape for Chicagoans.
- Originally, Bally's had planned to exclude white males from their initial offering for their first casino in Chicago city limits, a move that attracted controversy and lawsuits.
- In the revised prospectus filed with the Securities and Exchange Commission (SEC), Bally's signaled the end of their controversial strategy, citing potential costly litigation as a possible reason for the change.
- The gaming industry has faced a tumultuous journey with Bally's Chicago casino project, with the project's progress sluggish and almost two years passing since the initial S-1 filing.
- Reilly Stephens, senior counsel at the Liberty Justice Center, expressed his satisfaction with the revised IPO, stating, "We should never exclude people from our economy based on race or gender."
- Despite the concession, Bally's may still face legal challenges as they navigate the complexities of the Glennon case, with the possibility of losing their license if alterations are made to or terminated their Host City Agreement with Chicago.