Bally’s warns of covenant breach risk in SEC filing, flags “substantial doubt” on staying in business. Casino operator seeks new funding for Bronx project.
NEWS CORP currently carries an Alpha Score of n/a, giving AlphaScala's model a neutral read on the setup.
Bally’s Corp. told investors there is “substantial doubt” that it can keep operating, as the casino operator expects to breach its loan agreements.
The Rhode Island-based company said in a Friday SEC filing that it does not expect to meet lender requirements on liquidity or its debt leverage ratio, based on current forecasts. Bally’s said it is in active discussions on funding alternatives including asset or equity sales and debt financing.
It signed a non-binding term sheet last month for a loan tied to its planned casino resort in the Bronx, New York. The company warned that “there can be no assurance that the plans will be successfully implemented.”
Bally’s expects to raise over $500 million for the Bronx project, a spokesman told Bloomberg News on Saturday. The company had already invested more than $800 million in the New York site. Because the financing has not closed, the company said its accountants required the “going concern” language in the filing.
Bally’s, controlled by investment firm Standard General, has grown through acquisitions of casinos and online-gambling operations. It also won bids to develop major resorts in Chicago and the Bronx. Last year it merged its international online-betting assets with Intralot SA.
The company earlier this year amended its 2025 financials after its auditor forgot to sign them. It also filed its first-quarter results late, citing a review that required extra time.
On Friday, Bally’s reported second-quarter revenue of $792 million, up 21% from a year earlier, matching the average analyst estimate.
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