Due to growing debt and execution risks associated with its $1.7 billion Chicago casino project, Fitch Ratings downgraded Bally’s Corp. from “B” to “B-.” As the Rhode Island-based gambling operator moves forward with its biggest development to date, the downgrading underscores growing financial duress.
According to Fitch, Bally’s EBITDAR leverage peaked at 7.0x in 2024 and may increase to 8.0x–9.0x as a result of fresh debt issuance and lease commitments. Bally’s has raised $940 million in private capital, but it still needs $250 million more through an initial public offering (IPO) that is only open to women and minority investors. There is more uncertainty because the SEC has not yet approved this initiative. In the meanwhile, Bally’s is raising more money by selling $195 million worth of private shares.
Although the company has $620 million available on its revolving credit facility and no major debt maturities until 2028, Fitch warned that liquidity is tightening due to ongoing financial obligations.
Chicago Casino Faces Market Challenges
Bally’s permanent casino at 777 W. Chicago Ave. is scheduled to open in September 2026, but faces stiff competition in an already saturated market. High gaming tax rates, the challenge of building customer loyalty, and the underwhelming performance of its temporary Medinah Temple casino all pose risks.
The Medinah Temple location reported revenue of just $8.8 million in February, its lowest monthly total in over a year. Bally’s CEO Robeson Reeves acknowledged the struggles, stating: “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 also requesting a $300 million property tax relief over a ten-year period, although the idea is still pending before the Rules Committee of the Chicago City Council.
The company’s minority investment initiative is being challenged in two lawsuits supported by conservative organizations. Despite being mandated by the company’s contract with the city, plaintiffs contend that the program discriminates against white male investors.
If Bally’s is able to obtain complete funding for the Chicago project and improve its debt ratios, it may be able to raise its credit rating. In order to alleviate financial burden, the business is also thinking at a sale-leaseback agreement for Twin River Casino, which could bring in $735 million.
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