Bally’s stock sinks after survival warning

• Bally’s Corporation shares fell 26% on August 17 to $10.31, then kept sliding to $8.84 by August 19, closing near a new 52-week low.
• Bally’s had $390.1 million in cash against $4.51 billion in total debt, and told investors it may not meet the financial targets its lenders require.
• The warning lands as Bally’s Intralot works to close its £243 million takeover of Evoke, approved by Evoke shareholders the same day Bally’s shares fell.

Bally’s Corporation shares fell 26% on Monday, August 17, to close at $10.31, after the operator told investors in a routine quarterly filing with the U.S. Securities and Exchange Commission that it has serious doubt about its ability to keep operating without raising more cash.

The stock kept falling through the week, closing at $8.84 on Wednesday, August 19, near a new 52-week low. The filing, submitted August 14, says Bally’s does not expect to meet the cash and debt targets its lenders require over the next 12 months.

Cash squeeze deepens

The warning follows a period of strong revenue growth for Bally’s, including a 20.5% jump in second-quarter revenue to $792.2 million, building on gains flagged in its first-quarter results. Growth alone hasn’t solved the cash problem, though.

Bally’s said it’s exploring ways to raise money, including selling off assets, bringing in new equity investors, or taking on more debt. By the end of the quarter, it had $390.1 million in cash against $4.51 billion in total debt.

Lenders had already agreed in May to loosen one of the company’s debt rules for a set period. Bally’s now says it may not meet even that relaxed condition, or the cash cushion lenders require, over the coming year.

Company pushes back

A company spokesperson, Lauren Westerfield, told the Boston Globe that the warning reflects a technical accounting exercise rather than an immediate crisis.

Lauren Westerfield, spokesperson for Bally’s Corporation, said:

“Bally’s maintains liquid assets that are materially sufficient to meet its obligations should additional liquidity be required.”

She added that the analysis doesn’t account for future funding until financing deals are actually signed, and said Bally’s remains below Rhode Island’s legally required debt limit.

Jordan Bender, senior equity research analyst at Citizens Bank, wrote in a note to investors that the filing’s wording is fairly standard and reflects a single moment in time, not the company’s future plans. Still, he wrote in a note to investors that he doesn’t think Bally’s can finish all of its projects without selling assets or bringing in a partner at current debt levels.

Land-based bets add up

Bally’s is currently building three major properties in the United States worth close to $6.9 billion combined: a casino in Chicago, a project on the Las Vegas Strip, and Bally’s Bronx in New York City. Each carries a hefty price tag of its own, and all three are moving forward at different paces even as the company’s cash position comes under scrutiny.

In Chicago, Bally’s recently paused work on non-gaming areas of its casino amid a dispute with the city over new gaming machines. Its Las Vegas project remains in the early stages following the 2024 demolition of the former Tropicana. Bally’s Bronx, the priciest of the three at $4 billion, has already absorbed several hundred million dollars in fees before construction has even begun.

Evoke deal adds pressure

The warning lands as Bally’s Intralot, the Bally’s-controlled affiliate, works to close its takeover of Evoke.

Bally’s Intralot first confirmed a takeover approach for Evoke at a fraction of the UK operator’s former value in April, before securing extra time on the offer deadline in May. The two sides agreed a £243 million takeover in June, with TPG Credit reportedly in talks to help fund the deal.

On the other side of the table, Evoke absorbed a £46 million gaming duty hit in its own first-half results this month. Its shareholders approved the Intralot acquisition on August 17, the same day Bally’s own shares fell 26%.

Financing partners on both sides of that deal now have a much clearer picture of the debt sitting behind it, and the coming months of talks with lenders will likely decide how much of Bally’s broader ambitions stay on track.