Major casino operator discloses ‘substantial doubt’ over future as debt pressures mount

close Casino and resort operator Bally's issued a warning that it may struggle to keep up with its debt burden over the next year and there is "substantial doubt" about its ability to remain a going concern. The company made the disclosure in its second quarter earnings report filed with the Securities and Exchange Commission (SEC) on Friday. In the filing, Bally's said that the company is "pursuing a number of financing alternatives to enhance its liquidity, including asset monetization, an equity sale, and debt financings." "While the company is actively engaged in discussions on several financing alternatives, the conditions and events raise substantial doubt about the company's ability to continue as a going concern," Bally's said in the filing. FANATICS EXPANDS FURTHER INTO SPORTS AND BEYOND WITH FANATICS MARKETS PREDICTION TRADING PLATFORM The company said that in July it executed a term sheet for a loan that would fund the continued development of the Bally's Bronx project and other corporate purposes, though the term sheet is non-binding and the two sides are working towards a binding agreement. "These plans have not been finalized, are subject to market conditions and the actions of third parties, are not within the company's control, and there can be no assurance that the plans will be successfully implemented," Bally's explained, adding that those plans don't alleviate substantial doubt about its ability to remain a going concern. Companies are required to include a going concern warning in its financial filings when auditors see risks that the company faces the risk of failing or being forced into bankruptcy within the next year. LAS VEGAS OPENS FIRST CASINO IN 2 YEARS ON $780 MILLION PROPERTY CATERING MORE TO LOCALS THAN TOURISTS Bally's filing noted several factors that may influence its outlook and performance, including unexpected costs from its construction projects, risks from rapid growth, the impact of digitization of gaming on casino operators and the company's expansion into digital gaming, as well as regulatory compliance costs and other matters. As of the end of June, Bally's owns and operates 20 casinos globally, including some in the United Kingdom and in 11 U.S. states, as well as a golf course in New York and horse racetracks in Colorado and Wyoming. It also operates the Bally Bet Sportsbook & Casino, an iCasino and sportsbook licensed in 14 North American jurisdictions, and holds a majority interest in Bally's Intralot. TROPICANA LAS VEGAS CEASING OPERATIONS THIS SPRING TO MAKE WAY FOR NEW BALLPARK The company has rights to developable land in Las Vegas at the former site of the Tropicana Las Vegas, and has a license to build a full-scale casino and resort in The Bronx, New York. It's also developing Bally's Chicago, an integrated resort in the Windy City, though it recently paused construction on some portions of the project amid the uncertainty. Shares in Bally's stock have declined over 35.9% over the past five trading days following the warning. The company's stock is down just 4.9% over the last year, but has fallen more than 46.8% since the start of 2026. GET FOX BUSINESS ON THE GO BY CLICKING HERE Bally's shares are down 0.79% during Wednesday's trading session.