Bally's settles lawsuit with affirmative action activists

Driving the news: The casino settled a lawsuit Friday filed by the American Alliance for Equal Rights (AAER) and two white men who alleged the casino's initial offering excluded them from investing based on their race.

For the record: The terms of the settlement are confidential, lawyers for AAER tell Axios.

Flashback: Bally's filed for a $195 million initial public offering last year, but the only eligible buyers were women, minorities or firms majority-owned by women or minorities.

Reality check: At the time, the casino said the rule was in accordance with its Host Community Agreement, which requires that 25% of the Chicago casino be owned by women or minorities.

The latest: In April, Bally's dropped the minority and women requirement for participation in the IPO, but the paperwork still outlined a preference for Chicago and Illinois residents.

State of play: Construction of the permanent casino and entertainment center at the site of the former Freedom Center resumed last month after a Sun-Times investigation led the state gaming board to temporarily halt work.

• Bally's temporary casino in River North brought in more than $11 million in April, according to the state gaming board.

What's next: Bally's permanent casino is expected to open late next year.