Bally’s Corp. has been downgraded by Fitch Ratings from ‘B’ to ‘B-’, citing high debt levels, execution risks tied to its $1.7 billion Chicago casino project, and broader financial concerns. The downgrade underscores the mounting challenges for the Rhode Island-based gaming operator as it pushes ahead with its flagship development in Chicago.
Fitch noted that Bally’s EBITDAR leverage stood at 7.0x in 2024 and is projected to rise to between 8.0x and 9.0x, largely due to new debt issuance and lease-adjusted obligations.
Bally’s secured $940 million in private financing to help fund the project, but is still trying to raise an additional $250 million through an IPO restricted to minority and women investors—an initiative that has yet to gain approval from the U.S. Securities and Exchange Commission (SEC). In the meantime, the company has begun selling $195 million in private shares to shore up funding.
Despite having $620 million available on its revolving credit facility and no significant debt maturities until 2028, Fitch warned that Bally’s liquidity is shrinking due to ongoing financial obligations.
Bally’s is currently developing its permanent casino at 777 W. Chicago Ave., which is scheduled to open in September 2026. However, the project faces significant market headwinds.
Fitch pointed to Chicago’s saturated gaming market, high gaming tax rates, and the natural ramp-up challenges of a new casino development as factors that could hinder Bally’s ability to achieve its revenue targets.
Adding to the pressure, Bally’s temporary casino at Medinah Temple has underperformed, generating less than $8.8 million in February, its weakest month in over a year.
Bally’s CEO Robeson Reeves said: “The temporary Chicago casino returns remain below our expectations, though we are hearing from customers that they are increasingly excited by what is starting to happen a few blocks northwest at the permanent site.”
Bally’s is seeking a property tax break worth nearly $300 million over 10 years, but the proposal has stalled in Chicago’s City Council Rules Committee.
The company is also facing two lawsuits backed by conservative groups challenging its minority investment program, which was mandated under its agreement with the city. Plaintiffs argue that the initiative discriminates against white male investors.
Bally’s could see a credit rating upgrade if it successfully secures full funding for the Chicago project and improves its leverage ratios, according to Fitch.
The company is also planning a sale-leaseback deal for its Twin River Casino, which could generate $735 million, potentially easing financial strain.
0
20
20
