Every year, it seems we’re faced with the same discussions when it comes to business and the demographic makeup from the top to the bottom. The gender gap in senior management positions, in particular, continues to be a global concern as businesses grapple with providing equal opportunities at the very highest levels.
As these debates rage on, they highlight a systemic issue that continues to be pervasive throughout the business world. That is, swathes of the population are frozen out of business as they are overlooked, and because of that, boardrooms and shareholders are largely unrepresentative of the communities within which they exist.
However, one Chicago business is looking to change that by diversifying its shareholders and inviting minorities and women to invest as a priority. It’s not exactly an entirely novel idea, but could the prominence of the business and the industry it belongs to spark a sea change in how businesses seek out investment in future?
Bally’s Casino Chicago Setting a Shareholder Precedent With Latest Move
The business in question is Bally’s, a casino operator that won a licence to develop Chicago’s first ever permanent casino. They are seeking investments from underrepresented communities to help fund the opening of their new venue. They’re selling it as a chance for minorities and women to create generational wealth, amid claims that the casino could generate more than a billion dollars in revenue annually.
It’s not exactly a pipe dream, either. The casino industry has grown to monumental levels since the turn of the millennium. The introduction of online casinos has opened the world up to this kind of gaming, also allowing those previously sidelined to engage with it. That includes the women and people of minority background that Bally’s is seeking as shareholders.
In this country, you only have to look at Karamba’s presence in the UK market to see how the digital casino has changed the industry. There’s much more female visibility in the casino, with this most evident in the live-dealer casino games that are regularly hosted by female presenters. It seems like the days of male-only dealers are long behind us.
An Investment With the Long-Term Future in Mind for Women and Minorities
For Bally’s, this is a brave move in an effort to ensure the completion of their Chicago venue. At present, the site of the future megacasino is still in the process of demolition. The operator is seeking funds to the tune of US$250 million towards their total US$1.34 billion construction costs, according to the Chicago Sun Times.
As such, they have presented a proposition in which women and minority shareholders will be able to avail of stakes of US$250 up to US$250,000. It was a significant part of why Bally’s was offered the licence in the first place. This will grant these shareholders voting rights on the future of the casino and allow these investors to build wealth. However, there is potential for this to end in a significant loss of money for investors.
The temporary casino that the operator has opened in the city is reported to have underperformed the figures that management had proposed as part of their predictions for the permanent venue. This has led to them revising their forecasts and to some observers questioning whether the permanent venue will open. If it didn’t, these shareholders would lose significant funds.
Could This Prove a Successful Concept for UK Businesses in Other Industries?
What is key to understanding the context around the developments coming out of Chicago is the industry and its place in the US. As part of the licensing processes for prospective casinos in the States, local governments are requiring socially conscious measures as part of operators’ proposals. This means including women and minorities in decision-making and investing in community projects.
However, that doesn’t mean that this isn’t something that UK businesses can look to implement as we look to achieve equity in many industries. Instead, it provides a good example of how legislation and social pressures can help right the wrongs of the past by encouraging the inclusion of more diverse voices in business. Perhaps more British businesses could use these methods to establish true equality in industry.