Bally's Corporation shares closed at $10.31 on Monday, down 26% for the day, after the operator told the Securities and Exchange Commission it has 'substantial doubt' about its ability to continue as a going concern. The stock is down 38% year-to-date.
In the second-quarter 10-Q filed August 14, Bally's said it does not expect to meet liquidity and leverage covenant requirements under its credit facility over the next 12 months. The company is negotiating several financing routes, among them asset monetisation, share sales and debt financing. Cash at the end of the quarter stood at $390.1 million against net debt of $4.46 billion.
Where the money is tied up
The pressure sits in three US projects. The $1.7 billion Chicago casino has hit a third construction stop after the city legalised video terminals, and the operator puts the possible loss at $70 million in revenue a year. The opening has been pushed to early 2027. The $1.19 billion Las Vegas Strip scheme has barely moved since the Tropicana came down in October 2024, and Bally's is now leaning toward a retail and entertainment format rather than a casino resort. Analysts name that site as the most likely candidate for a sale.
Bally's Bronx, budgeted at $4 billion, has already consumed $615 million before construction starts: $500 million for the New York state licence and $115 million to the Trump Organization under the terms of the land purchase. Work has to begin in August or September to hold a 2030 opening. In July the company signed a preliminary loan agreement for the project, and in August a letter of intent with a potential investor.
Citizens Bank analyst Jordan Bender reckons Bally's cannot complete every project without selling assets or bringing in partners at its current debt level.
