Bally’s Stock Falls 26% After Going-Concern Warning Raises Liquidity Concerns

PROVIDENCE, R.I. – Bally’s shares fell about 26% Monday after the casino operator warned of “substantial doubt” about its ability to continue as a going concern.

The disclosure raises financing questions across Bally’s casino portfolio and development pipeline, although the company says it has sufficient liquid assets to meet its obligations if additional liquidity is required.

Bally’s said current forecasts, excluding financing initiatives still under discussion, indicate it may not satisfy liquidity requirements attached to a lender waiver or a leverage covenant once it is reinstated. In its second-quarter SEC filing, the company said those conditions create substantial doubt about its ability to continue as a going concern.

Bally’s Seeks New Financing as Credit Capacity Falls

Lenders conditionally waived compliance with Bally’s consolidated net leverage ratio covenant in May, but the waiver depends partly on the company continuing to meet minimum liquidity requirements. Bally’s said its current forecasts indicate it could fall short without additional financing.

The company is considering asset monetization, an equity sale and new debt financing. Bally’s signed a nonbinding term sheet in July for a loan that could fund further development of its Bronx casino project and general corporate purposes, but cautioned that its financing plans have not been finalized and may not be completed.

Pressure is also building on its revolving credit facility. Commitments fell to approximately $519.3 million in February and are scheduled to decline to about $319 million in October. Bally’s had $195.8 million available under the facility as of June 30.

Cash Falls Despite Revenue Growth and Property Sale

The warning came alongside higher revenue. Bally’s reported second-quarter revenue of $792.2 million, up 20.5% from a year earlier, while adjusted EBITDA declined to $124 million from $129.2 million. The company recorded a $164 million quarterly net loss and a $308 million six-month loss attributable to Bally’s.

Cash and cash equivalents fell from $798.4 million at the end of 2025 to $390.2 million at June 30. Bally’s also used $265.9 million in cash from operating activities during the first half, while carrying approximately $4.5 billion in long-term debt, including its current portion.

The cash decline came despite $685 million in proceeds from the sale-leaseback of Bally’s Twin River Lincoln real estate. The $700 million transaction added $56 million in minimum annual lease payments, while Bally’s also paid a $500 million New York gaming licence fee during the first quarter.

Rhode Island and Chicago Monitor Bally’s Position

The disclosure has particular relevance in Rhode Island, where Bally’s operates casinos in Lincoln and Tiverton. Rhode Island Lottery spokesperson Paul Grimaldi told WPRI that state officials are in regular contact with Bally’s leadership and are monitoring the latest development.

The financial warning also arrives during the dispute over construction at Bally’s $1.7 billion Chicago casino. Bally’s recently slowed work on the hotel, event center and other non-gaming amenities amid a disagreement with the city over video gambling terminals.

Bally’s says the Chicago slowdown is separate from the going-concern disclosure and maintains that the permanent casino remains targeted for an early 2027 opening. The company’s immediate financial focus is securing additional liquidity before its revolving credit commitments decline and its lender requirements become more restrictive.

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