Bally’s Warns of Debt Covenant Breach Risk as It Seeks New Funds

(Bloomberg) -- Bally’s Corp. warned investors of “substantial doubt” that it will be able to continue as a going concern as the company risks running afoul of agreement with lenders.

The Rhode Island-based casino operator said in a regulatory filing Friday that it’s actively engaged in discussions on potential funding alternatives. But based on current forecasts, it doesn’t expect to be able to satisfy lender requirements on liquidity or its debt leverage ratio, according to the filing. 

Bally’s said it’s pursuing a number of alternatives to bolster liquidity, including asset or equity sales, and debt financing. 

It executed a term sheet last month for a loan that would help fund development of its project in Bronx, New York, along with proceeds for other purposes. But that term sheet remains non-binding and “there can be no assurance that the plans will be successfully implemented,” it said in the filing.

Bally’s anticipates raising over $500 million to fund the casino resort in the Bronx, the company said in a statement to Bloomberg News on Saturday. Since that financing hasn’t officially closed, the company’s accountants required that it put the “going concern” language in its regulatory filing. Bally’s has already put more than $800 million into the New York project.

The company, which is controlled by investment firm Standard General, has grown rapidly in recent years, picking up multiple casinos and online gambling operations. It also won bids to build major resorts in Chicago and the Bronx. 

Last year it merged its international online betting assets with Intralot SA.

Bally’s earlier this year amended its 2025 financials because its auditor forgot to sign them. It was late filing its first quarter results, citing a review of its financial statements that required extra time.

On Friday, the company reported a 21% jump in second-quarter revenue to $792 million, which met the average estimate of analysts.

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