In its pursuit of expansion, Bally’s Corp. is facing liquidity concerns that could jeopardize the company's future.

The casino operator, which has two major gambling resort projects in the works, is at risk of defaulting on a lender agreement, raising “substantial doubt” about its ability to continue operating, it warned investors in a Friday filing with the Securities and Exchange Commission.

In May, Bally’s lenders agreed to temporarily waive requirements regarding the amount of debt the company can carry relative to its cash flow. In exchange, Bally’s must keep a certain amount of cash on its books and meet the leverage ratio mandates by the time the waiver ends in May 2027.

The company has concerns about doing both, setting off a race to raise capital, including by potentially selling assets or borrowing against its latest project in New York City. 

In a statement to Bisnow, a Bally's spokesperson attributed the disclosure to accounting requirements.

“The going concern disclosure is based on a forward-looking technical accounting analysis which considers only funding that has been unconditionally secured as of the date of the assessment,” the statement says.

The news spooked investors nonetheless, sending Bally’s stock spiraling down more than 27% Monday morning.

Last month, Bally’s executed a term sheet to finance its project in the Bronx. After a yearslong bidding process, the firm’s $4B development was selected as one of three awardees of a downstate New York casino license in December.

The financing would help alleviate Bally’s stress, but the term sheet isn’t yet binding. Bally’s told Bloomberg that it expects to raise more than $500M for the Bronx project, on top of the $800M it has already invested.

The Rhode Island-based company also has a contractual obligation to the city of Chicago to ensure that its casino complex there gets built. It has already spent $940M on the project and has approximately $400M of construction spending remaining under its agreement, but it expects the development will cost more. 

The project, located alongside the Chicago River, paused construction earlier this month after the city legalized video gambling terminals. Bally’s said the move breaches the city’s 2022 agreement with the company, which includes the commitment not to expand gaming. 

Bally’s has been operating a temporary Chicago casino since September 2023, with a permanent location expected to open next year. Next month, the company will have to make a payment it agreed to render to the Illinois Gaming Board three years after operations commenced at either the temporary or permanent facility, adding to looming payments.

In the statement, Bally's said Friday's SEC filing has no impact on the Chicago project and that the company “remains well situated to continue delivering on its obligations.”

“We continue to stand ready to engage in open, honest and collaborative conversation about the risks to the City’s finances, police and fire pension funds, union jobs and public safety because of the legalization of video gambling terminals,” the statement says.

In addition to the new developments, Bally’s has expanded its footprint in recent years through the acquisitions of existing casinos. In July, the Louisiana Gaming Control Board approved its purchase of Sam’s Town Casino & Hotel, which will be rebranded as Bally’s Shreveport North.

Bally’s Intralot, a global lottery business in which Bally’s is a majority shareholder, also agreed to acquire gaming tech company Evoke in a $328M deal in June.

Despite its going concern warning, Bally’s reported $792M in revenue in the second quarter, up more than 20% year-over-year. 

Standard General, a New York City hedge fund run by Soohyung Kim, is Bally’s majority owner, after acquiring the company in February 2025 for an enterprise value of $4.6B. The transaction combined Bally’s with The Queen Casino & Entertainment.