Bally’s Lands Much-Needed $560M Loan for Bronx Casino

Bally’s found a solution to a portion of its financial woes, announcing it had secured $560 million in financing needed to develop its $4 billion Bronx, New York casino.

Private credit asset manager WhiteHawk Capital Partners supplied the loan to Bally’s, which is in the middle of a well-documented time of financial turmoil. The agreement will see Bally’s receive $400 million on the closing date of loan and the promise of $160 million in future loan payments.

The loans were confirmed by Bally’s leadership on Monday.

Bally’s Bronx back on schedule

Bally’s needs to come up with roughly $6 billion to complete casino projects in New York and Chicago, Illinois. An intimidating figure on its own, that comes in spite of the gaming giant claiming there was “substantial doubt” about its ability to continue operating in its current format in a Form 10-Q filing with the Securities and Exchange Commission in August.

Although there is more than $5 billion to go — not all of which is outstanding — to complete the casinos, the $560 million is a significant boost in the development of the Bronx-based Golf Links at Ferry Point Park property. 

“This important financing allows us to progress the pre-construction planning process so that we are ready to complete the remainder of the capital raise and remain on schedule,” said Bally’s Chairman Soo Kim in the press release. “Furthermore, the additional liquidity provides us greater flexibility for other capital opportunities.”

The deal is expected to close before the end of the third quarter. 

Although the Chicago project has dominated news in recent weeks because of disagreements over video gaming terminals (VGTs) and Bally’s threat to slow construction until a resolution is reached, the Bronx property remains the company’s focal point. The massive project was its largest undertaking and has the chance to provide an estimated $1.5 billion in annual gaming revenue once fully matured.

Bally’s development plans

Bally’s Bronx casino will come with all of the bells and whistles: slot machines, live-dealer table games, blackjack, a massive facility, eateries, and much more.

According to the company, the new funding will be used for pre-construction costs and related expenditures. A chunk of the money will also be allocated to flexible general purposes. 

“We are pleased to partner with Bally’s on this important next phase of the Bronx project,” WhiteHawk Managing Partner Bob Louzan said. He said the financing will support pre-construction work while Bally’s advances its broader financing plan.”

Bally’s owns 20 casinos in 11 states, the New York golf course, horse racetracks in Colorado, and the sports betting and online casino platform Bally Bet. Its audacious plans to take over the New York and Chicago gaming scenes represent huge growth opportunities, but not without significant investment upfront.

Despite the disagreements over VGTs in Chicago, the company last week paid its $4 million host city agreement charge, indicating that it is still committed to bringing a gaming facility to the Windy City by the expected 2027 deadline. VGTs still remain a divisive topic, with lawmakers expected to hold another meeting with Bally’s representatives.