The Liberty Justice Center, a nonprofit public-interest litigation center, has filed a lawsuit against Mayor Brandon Johnson, the city of Chicago, and other defendants over racial and sexual discrimination in the city’s upcoming casino project.
The lawsuit, Glennon v. Johnson, alleges that the city’s Host Community Agreement (HCA) with Bally’s Chicago Operating Company imposes unconstitutional race- and sex-based quotas on the casino’s ownership, board composition, and workforce.
In 2022, Chicago selected Bally’s to develop the city’s first integrated casino. As part of the agreement, the city mandated that Bally’s adhere to strict diversity quotas, including:
- A 25% minority ownership requirement.
- A 40% minority requirement for board composition.
- A commitment to maintaining a 60% minority workforce.
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To comply with these quotas, Bally’s launched an Initial Public Offering (IPO) of 10,000 shares, which it restricted to investors who meet the city’s definition of “minority.” When Illinois resident Mark Glennon, a white man, attempted to invest in the IPO on January 25, he was excluded solely based on his race and sex.
The Liberty Justice Center filed the lawsuit on Glennon’s behalf, arguing that the city’s quotas violate the Fourteenth Amendment’s Equal Protection Clause. The suit names Mayor Brandon Johnson, the city of Chicago, Treasurer Melissa Conyears-Ervin, Bally’s Chicago Operating Company, and members of the Illinois Gaming Board as defendants.
“Chicago’s government has blatantly violated the Fourteenth Amendment’s Equal Protection Clause by requiring a private business to enforce discriminatory provisions under threat of severe financial loss,” said Reilly Stephens, Senior Counsel at the Liberty Justice Center. “Ultimately, the city has created a racial classification requirement that cannot withstand constitutional scrutiny.”
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The lawsuit seeks to strike down the discriminatory provisions and prevent the city from enforcing similar quotas in future development agreements. The Liberty Justice Center also plans to file a motion for a temporary restraining order to halt enforcement of the quotas while the case proceeds.
The case highlights the ongoing tension between efforts to promote diversity and the constitutional guarantee of equal protection under the law. While the city argues that the quotas are necessary to address historical inequities, critics contend that such measures unfairly discriminate against individuals based on race and sex.
The lawsuit comes amid a national debate over affirmative action and diversity initiatives in both the public and private sectors. The outcome of Glennon v. Johnson could set a significant precedent for how cities and businesses approach diversity requirements in development projects.
The case was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division. If the court grants the temporary restraining order, the city will be barred from enforcing the quotas until the lawsuit is resolved.
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