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Bally’s Corp. stock fell nearly 30% at the opening bell Aug. 17 after the casino operator warned of substantial doubt about its ability to continue operating over the next year. Shares closed down 26% that day at $10.34, according to Yahoo Finance data cited by WPRI.
The stock has since recovered some ground as the Providence-based company, which operates Rhode Island’s two casinos, explores ways to raise cash.
Bally’s reported strong second-quarter revenue growth, but its quarterly filing with the Securities and Exchange Commission warned of liquidity risks tied to debt covenants.
The disclosure is particularly significant in Rhode Island, where Bally’s operates the state’s two casinos and digital gaming platforms. The company was also selected in May to become Rhode Island’s second licensed online sports betting operator.
Bally’s revenue grows as losses and cash burn persist
Bally’s reported strong revenue growth in the second quarter, but several other financial measures point to continued pressure on the company:
- Revenue: $792.2 million, up 20.5% year over year, with growth across its casino, lottery and digital betting businesses.
- Digital betting: Intralot revenue increased 22%, while North American interactive wagering revenue rose 17%.
- Adjusted EBITDA: About $124 million, down from $129.2 million a year earlier.
- Net loss: $164 million, including a $146.1 million loss attributable to Bally’s, or $2.41 per share.
- Six-month loss: Bally’s reported a $308 million attributable loss through June, while operating activities consumed $265.9 million in cash.
- Cash position: Cash and cash equivalents fell from $798 million at the end of December to $390 million as of June 30.
- Real estate proceeds: Bally’s collected $685 million from real estate sales, including the February sale of the land beneath its Lincoln casino for $700 million.
- Lease costs: Bally’s now leases the Lincoln property back for $56 million annually, while rent tied to its triple-net leases rose 45% during the quarter to $63.5 million.
North America Interactive is Bally’s Canadian US online gambling business. It includes Bally Bet Sportsbook and Bally Bet Casino, as well as other digital gaming operations. Bally’s describes it as
The Lincoln sale provided a significant influx of cash but also converted an owned asset into a fixed annual expense, adding to Bally’s ongoing costs.
Bally’s faces liquidity and debt risks
The warning centers on Bally’s revolving credit facility. Lenders granted the company a temporary waiver in May after it fell below a required leverage ratio. Bally’s now projects it will not satisfy the liquidity conditions attached to that waiver over the coming year.
Borrowing capacity under the facility had already fallen to about $519 million by February and is scheduled to drop to roughly $319 million by October.
Auditors use “substantial doubt” and “going concern” language when a company faces a serious risk of running out of cash within 12 months. Bally’s said the conditions disclosed in its filing “raise substantial doubt about the company’s ability to continue as a going concern.”
The company also said its financial reporting controls were ineffective as of June 30 because of a previously identified weakness in income tax accounting.
Bally’s considers asset sales, equity and new debt
Bally’s has sought to temper the market reaction, describing the going-concern disclosure as a forward-looking technical accounting analysis that excludes funding not yet finalized.
Spokesperson Lauren Westerfield said Bally’s “maintains liquid assets that are materially sufficient to meet its obligations.” The company is considering several ways to raise cash, including asset sales, new equity and additional debt. However, Bally’s said none of those options currently eliminates the going-concern warning.
The company also remains below Rhode Island’s mandated leverage ratio.
Major expansion projects add to Bally’s capital needs
Bally’s continues to spend heavily on major development projects despite its liquidity concerns. Key commitments and projects include:
- New York: Bally’s paid $500 million for its New York gaming license in the first quarter of 2026, plus another $115 million related to a golf course concession for its proposed $4 billion Bronx casino, which is expected to open by 2030.
- Chicago: Bally’s paused work on several nongaming amenities, including a hotel tower and event center, after issuing a reset notice Aug. 8 amid a dispute with city officials over new video gambling terminals. The company warned that total project costs will exceed its contractual obligation by an amount it cannot yet estimate.
- Las Vegas: Bally’s has scaled back its near-term plans for the roughly $1.1 billion mixed-use development surrounding the Athletics’ new ballpark at the former Tropicana site. The Clark County Commission approved permits Aug. 19 for a parking structure, mixed-use podium and 2,500-seat theater. Permits for the eventual hotel-casino are scheduled for consideration Sept. 16 and still require Federal Aviation Administration approval, according to the Las Vegas Review-Journal. An unnamed buyer has also expressed interest in purchasing Bally’s rights to the entire project. If the deal does not happen, Bally’s said its funding partners are prepared to proceed.
- Evoke acquisition: Bally’s is awaiting regulatory approval for its roughly $326 million acquisition of British operator Evoke PLC, announced in June.
These projects add to Bally’s capital requirements as the company works to address the liquidity concerns outlined in its latest filing.
Rhode Island officials monitor Bally’s finances
Bally’s financial condition matters to Rhode Island because its Lincoln and Tiverton casinos are major sources of state revenue. Video lottery terminals at the properties generated $313.6 million in fiscal 2025, accounting for about 71% of the Rhode Island Lottery’s gross profit, according to the state auditor general.
Rhode Island Lottery spokesperson Paul Grimaldi said Bally’s leadership has “appraised us of this latest development” and that officials are monitoring the situation.
Gov. Dan McKee also spoke with Bally’s Rhode Island leadership this month. The company told his office it is working to address liquidity concerns while completing ongoing projects and does not expect an impact on its Rhode Island facilities.
Lawmakers offered differing reactions. House Minority Leader Michael Chippendale, a longtime critic of the state’s gambling contracts, said the disclosure validated concerns he raised before Rhode Island signed its 20-year deal with Bally’s and IGT in 2021.
Senate Majority Leader Frank Ciccone said he does not believe the disclosure will affect Rhode Island’s casino operations but will continue monitoring the situation with the Division of Lottery.
Bally’s financial trouble raises questions about casino control
Rhode Island does not own a stake in Bally’s and therefore is not directly exposed to the company’s financial condition. The state technically owns revenue generated by slot machines and table games and pays Bally’s a percentage to operate the casinos.
The bigger question is what would happen if Bally’s creditors gain greater control over the company.
Standard General owns roughly three-quarters of Bally’s, while a $1.1 billion term loan issued in February came from Ares Management, King Street Capital Management and TPG Credit. Any change of control would likely require approval from Rhode Island gaming regulators and could reopen the 20-year master contract lawmakers approved in 2021.
Chippendale said Rhode Island’s lottery system does not depend on Bally’s to function, although the company remains deeply tied to the state’s casino and video lottery operations. He expects lawmakers will have to address the issue early in next year’s legislative session.
