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Bally’s liquidity concerns put casino expansion and operations at risk
The company warned it could default under a lender agreement if it cannot meet cash and leverage requirements when a waiver ends in May 2027.
Bally’s Corp. warned investors that liquidity concerns could threaten its ability to keep operating, casting doubt on its future as it pursues expansion. In a Friday Securities and Exchange Commission filing, the casino operator said it faces “substantial doubt” about whether it can continue as a going concern if it cannot address obligations tied to its lenders.
Bally’s lenders previously agreed in May to temporarily waive certain debt-to-cash-flow requirements, but the waiver runs until May 2027. By then, the company said it must keep a certain amount of cash on hand and meet leverage ratio mandates, concerns it says raise the risk of a default.
The filing suggests Bally’s may be forced into a capital-raising race, including options such as selling assets or borrowing against its New York City project. A Bally’s spokesperson told Bisnow the going concern disclosure stems from “forward-looking technical accounting” that considers only funding unconditionally secured as of the assessment date.
The warning has already unsettled investors, with Bally’s shares down more than 27% Monday morning. Bally’s is developing a $4B Bronx casino project selected as a New York downstate license awardee in December, and it has also spent $940M on its Chicago complex, where construction paused earlier this month after Chicago legalized video gambling terminals.