Bally’s Corporation is under intense financial scrutiny following a major announcement concerning its global online operations. Fitch Ratings recently placed Bally’s and its debt on “Rating Watch Negative,” suggesting that the casino company’s financial outlook might face a downgrade in the coming months. This move comes on the heels of Bally’s decision to merge its international interactive division with Greek gaming company Intralot in a deal valued at $3.2 billion. While this strategic alliance is set to provide Bally’s with $1.76 billion in cash and a 60% stake in the new entity, concerns linger about the company’s overall debt burden. Fitch has pointed out that even with this influx of capital, Bally’s debt levels are unlikely to see a significant reduction, remaining above 10 times its earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR).
In addition to the debt concerns, the rating agency highlighted several other risks tied to Bally’s ongoing initiatives. One such effort includes the planned sale and leaseback of its Twin River property in Rhode Island to Gaming and Leisure Properties Inc. for $735 million, which is contingent upon lender approval or refinancing existing loans. Fitch warns that failure to close this deal could jeopardize Bally’s ambitious $
In addition to the debt concerns, the rating agency highlighted several other risks tied to Bally’s ongoing initiatives. One such effort includes the planned sale and leaseback of its Twin River property in Rhode Island to Gaming and Leisure Properties Inc. for $735 million, which is contingent upon lender approval or refinancing existing loans. Fitch warns that failure to close this deal could jeopardize Bally’s ambitious $1.7 billion Chicago casino project. Despite having committed up to $450 million for the Chicago development, Fitch notes that Bally’s current cash reserves appear adequate for now, but the future repayment of its revolving credit facility in 2026 remains a looming challenge. The competitive landscape of Bally’s US online gambling business, which continues to operate at a loss, further exacerbates Fitch’s concerns, questioning the division’s ability to contribute positively to Bally’s credit standing in such a cutthroat market.
While Bally’s does boast a solid regional casino presence across several states and holds a robust position in the UK online gaming market, these stabilizing elements are overshadowed by the company’s hefty debt load and involvement in numerous complex financial transactions. Fitch underscores the significant financial risks associated with these dealings, which elevate the potential for further instability. The rating review initiated by Fitch will extend
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