Bally's Corp shares fell 26% on Monday after the operator disclosed covenant trouble in its SEC filing. The company said current projections show it will miss liquidity and leverage requirements under its credit facility within the next twelve months. 'Conditions and events raise substantial doubt about the company's ability to continue as a going concern,' the filing stated. Shares closed at $10.31, down 38% year to date.
Bally's ended Q2 with $390.1m in cash against $4.46bn in net debt. Management is exploring asset sales, equity raises and new borrowing. A preliminary term sheet for construction debt on the $4bn Bally's Bronx project was signed in July, but the deal is not certain.
The operator has three large US projects in the pipeline: a permanent Chicago casino ($1.7bn), a Las Vegas Strip property ($1.19bn) and Bally's Bronx, which won one of three New York licences last December. Citizens analyst Jordan Bender sees Las Vegas as the most likely sale or partnership candidate. CEO Robeson Reeves made no mention of the casino in the Q2 release, speaking only of talks around retail and entertainment on the site.
Construction of the non-gaming portion in Chicago has been paused after VGT legalisation across the city, which threatens $70m in annual revenue. In the Bronx, Bally's has already spent $615m — $500m for the licence and $115m to Trump Organization for the site — but has not broken ground. Rival Resorts World NYC is already operating, and Hard Rock Metropolitan Park is aiming for a 2030 opening backed by billionaire Steve Cohen, whose net worth stands at $23bn. Bally's Q2 revenue rose 20% to $792.2m, but the figure was overshadowed by the debt disclosure.
