Bally's Corp. shares plunged over 25% following disclosures in its second-quarter 10-Q filing regarding its substantial debt. The company reported $390.1 million in cash and equivalents against long-term net debt of $4.46 billion at the end of the quarter. This financial strain has led to a "going concern" warning, indicating substantial doubt about the company's ability to continue operations, despite a 20% year-over-year revenue increase to $792.2 million in Q2.
Analysts, such as Jordan Bender from Citizens, believe Bally's will likely need to sell assets or bring in development partners to complete its three major US projects: a $1.7 billion casino in Chicago, a $1.19 billion Las Vegas Strip project, and Bally's Bronx. The Las Vegas project, intended as a retail-entertainment district rather than a full casino-resort, is considered the most probable candidate for sale or partnership, given the lack of progress since the Tropicana's demolition in October 2024. CEO Robeson Reeves has already indicated advanced negotiations for retail and entertainment offerings in Las Vegas.
Further compounding financial pressures, Bally's halted construction on non-gaming elements of its Chicago casino due to the city's legalization of video gaming terminals, which could reduce Bally's annual revenue by $70 million. This marks the third construction stoppage for the Chicago project, though Bally's maintains these issues are separate from its overall financial concerns. The company is actively pursuing financing alternatives, including asset monetization, equity sales, and debt financing, such as a non-binding term sheet for a loan for the Bronx project.
