Bally’s shares fall 26% as doubts grow over US casino projects

Bally’s shares fell more than a quarter on Monday after the US casino operator warned that it could fail key debt requirements over the coming year.

The market reaction comes as Bally’s expands internationally, including through its 58%-owned Bally’s Intralot business, which has agreed a £243m takeover of William Hill and 888 owner evoke. Although the two companies have separate financing arrangements, the sell-off has placed greater scrutiny on Bally’s wider commitments.

Debt warning arrives as evoke deal progresses

Bally’s stock closed at $10.31, down 26% for the day and 38% since the beginning of 2026. Although second-quarter group revenue increased 20% to $792.2m (£586m), investors instead focused on warnings contained in its US regulatory filing.

In its 14 August 10-Q filing, Bally’s said its forecasts indicated that it would not satisfy either the liquidity maintenance requirement or consolidated net leverage ratio covenant attached to its revolving credit facility during the coming 12 months.

The operator is considering asset monetisation, an equity sale and further borrowing. However, it said there was no assurance these plans would succeed. Bally’s ended the quarter with $390.1m (£289m) in cash and equivalents and long-term net debt of $4.46bn (£3.3bn).

“The conditions and events raise substantial doubt about the company’s ability to continue as a going concern.” — Bally’s Q2 2026 filing

Meanwhile, Bally’s Intralot’s all-share acquisition of London-listed evoke is expected to complete in late 2026 or early 2027, subject to approvals. The deal would bring William Hill, 888 and Mr Green into the same wider business as UK-facing brands, including Jackpotjoy and Virgin Games.

Las Vegas seen as the easiest exit

Citizens analyst Jordan Bender said Bally’s did not appear able to complete its three major US developments without selling an asset or bringing in a partner. He identified Las Vegas as the most likely candidate for either option.

Plans for the former Tropicana site carry an estimated cost of $1.19bn (£880m), but progress has been limited since its demolition in October 2024. Bally’s has increasingly emphasised retail and entertainment, rather than a casino resort.

Chief executive Robeson Reeves made no reference to a Las Vegas casino in Bally's Q2 announcement. He instead said the company was in “advanced negotiations” with prospective retail and entertainment partners.

Chicago and the Bronx compete for funding

Bally’s $1.7bn (£1.26bn) permanent Chicago casino is already being built, although work on its non-gaming elements was halted after the city legalised video gaming terminals. Bally’s has warned that wider VGT availability could reduce annual revenue by $70m (£52m).

The Bronx presents an even larger commitment. The New York project is expected to cost $4bn (£3bn), with $615m (£455m) allocated during 2026. Bally’s signed a non-binding term sheet for a pre-construction loan in July and a letter of intent with a potential equity investor in August.

Securing those funds may determine whether Bally’s can keep the Bronx development on schedule without selling or scaling back its Las Vegas plans. The covenant disclosure does not directly alter the evoke transaction, but it comes as Bally’s increases its exposure to the UK while reassessing how many multibillion-dollar US developments it can support.