Bally’s Corporation shareholders responded strongly in recent days after the casino operator noted “substantial doubt about the company’s ability to continue as a going concern.”
In a Quarterly Report 10-Q filing on Aug. 14, the company acknowledged that its liquidity position and debt resolution were far from certain heading into the second half of 2026, after its completed merger with Intralot and its recently announced $326m acquisition of British operator evoke.
“While the Company is actively engaged in discussions on several financing alternatives, the conditions and events raise substantial doubt about the Company’s ability to continue as a going concern,” reads a note on page 12 of the 82-page filing.
The company confirmed that it is pursuing several potential financing alternatives intended to boost its liquidity, including:
- Asset monetization
- Equity sale
- Debt financings
However, noting that progression of these plans is not necessarily within the company’s control, Bally’s said it “has concluded that management’s plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern.”
Bally’s stock price fell sharply in the aftermath of that disclosure, dropping 39.4% in less than a week from $14.05 on Friday afternoon to $8.52 by Wednesday morning. The update comes while the company continues to be approximately $4.5bn in debt in the long term.
Bally’s full steam ahead in Bronx, adjusts Chicago plan
The warning about liquidity comes as the operator continues to pump money into several major projects, most prominently the Bally’s Bronx construction in New York City.
The operator received one of three new casino licenses for the Big Apple last year and work is underway on the $4bn project. The plan is for the integrated casino to offer 3 million square feet of gaming space alongside a 500-room hotel, a 2,000-person events center and an 18-hole golf course, with a slated opening date of 2030.
CEO Robeson Reeves said in Bally’s Q2 2026 financial report that the company has already made “substantial investments” in the project, including Q1 2026 payments of the $500m casino license fee and a $115m concession to the Trump Organization related to the use of the site of a former golf course.
“We are actively raising additional capital for the further development and construction of the project and have substantial interest from potential partners for both project debt and equity financings,” Reeves added. The company has signed a nonbinding agreement for a pre-construction loan for Bally’s Bronx and a letter of intent with a potential equity investor.
Elsewhere, Bally’s is working on a permanent Chicago casino that it hopes to open next spring. However, shortly before its Q2 reporting, the company paused construction on almost all of the planned non-gaming amenities at the $1.7bn complex amid a standoff related to Chicago legalizing video lottery terminals (VLT).
The operator insisted in its filing that “Bally’s Chicago remains well situated to continue delivering on its obligations.”
Could Bally’s abandon Vegas plan?
The third major construction project Bally’s has ongoing is its plan to establish a new resort at the site of the now-demolished Tropicana on the Las Vegas Strip that is slated to host the new A’s baseball stadium.
The Las Vegas Review-Journal reported on Aug. 18 that Bally’s could be moved to abandon the Vegas plans if it receives a satisfactory offer from another company to take over the $1.1bn project.
Citizens analyst Jordan Bender wrote in a note published on Aug. 17 that while “the situation does not appear dire,” his company doubts that Bally’s has the capacity to finish all three projects if the status quo remains. “We believe Las Vegas would be the most likely asset to be sold or have a partner brought in, given the language in the [Q2 2026] release only mentions non-gaming amenities and no longer refers to a casino at the site.”
Bally’s reports revenue growth on several fronts
In terms of the bottom-line results, Bally’s reported that its quarterly revenue grew 20.5% year over year to $792.2m for the three months ended June 30, 2026.
Broken down by segment:
- Casinos & Resorts made up the bulk of that revenue ($401.0m), up 2.0% year-over-year.
- The Bally’s Intralot B2C business brought in $243.5m in revenue, up 22.3%, while Bally’s Intralot B2B revenue grew tenfold from $7m in Q2 2025 to $79.5m in Q2 2026.
- North America Interactive revenue, including Bally Bet in North America, grew 16.9% to $66.1m.
Bally’s total adjusted EBITDAR was $187.5m, up from $173.2m in Q2 2025.
“In summary, our strategic initiatives are creating a highly scaled, growing, global omni-channel provider of retail and online experiences and we are aggressively pursuing and executing on the many growth opportunities before us,” said Reeves in the update.
