Bally’s Corporation has fortified its financial reserves with a $1.1 billion loan package, a strategic move to advance its plans for establishing a casino in New York State. This comprehensive financing arrangement is a significant step for Bally’s, expanding its borrowing capabilities through a combination of immediate and delayed-term loans, sourced primarily from private credit institutions.
This new financial framework, which supersedes a previous arrangement from mid-2025, involves a conglomerate of private credit lenders, including Ares Management Credit, King Street Capital Management, and TPG Credit. The loan structure comprises an initial $600 million term loan and an additional $500 million available through a delayed draw mechanism.
Bally’s intends to utilize the initial loan alongside cash reserves and revenue generated from the sale and leaseback of its Twin River Lincoln Casino property in Rhode Island. This financial strategy aims to address several company needs, such as refinancing existing debt and reducing reliance on revolving credit. The delayed draw component is earmarked specifically for the substantial licensing expenses associated with securing the New York casino license and replenishing funds expended in the process.
The loan agreement stipulates a repayment period of five years, potentially concluding earlier by March 2029 if Bally’s unsecured bonds due that year remain outstanding. In securing this loan, Bally’s pledged a broad spectrum of its assets as collateral while strategically excluding certain assets, such as holdings in Intralot S.A., the Star Entertainment Group, and specific development entities, to maintain flexibility in its financial operations.
This newly structured credit facility also positions Bally’s to finalize its longstanding real estate transaction involving the Twin River Lincoln property. The company had previously agreed to sell this asset to Gaming and Leisure Properties, Inc. (GLPI) for approximately $735 million. However, the deal faced delays due to concerns from creditors. With the new financing in place, Bally’s anticipates closing the transaction in early 2026, allowing GLPI to enhance its portfolio with another high-performing property. Analysts familiar with the deal emphasize its strategic alignment with GLPI’s historical performance, noting consistent revenue generation from the Rhode Island site.
Soo Kim, Chairman of Bally’s, expressed confidence in the enhanced financing, highlighting it as a testament to the strong backing from lenders and a catalyst for continued investment across Bally’s various ventures. The company remains committed to rapidly expanding its footprint, with plans to debut a new Chicago project in the coming years and recent efforts to acquire a downstate New York license.
Despite these ambitious projects, Bally’s faces a complex business environment. Its latest quarterly earnings report revealed higher-than-expected revenue, primarily driven by its Casinos & Resorts division and acquisitions. Nonetheless, increased operational costs have impacted its digital operations, presenting a mixed picture of financial health. The company’s ability to balance its growth ambitions with substantial debt obligations remains a focal point for investors and analysts.
In a broader context, Bally’s strategic expansion aligns with recent trends in the gambling industry, where companies are investing heavily in major urban markets to capture increased consumer interest. New York State, in particular, represents a lucrative market due to its large population and significant tourism. However, Bally’s faces stiff competition, as other major operators also vie for a foothold in this competitive landscape.
One potential risk is the volatility of the gambling industry, which can be influenced by regulatory changes and economic downturns. Any unforeseen regulatory hurdles or shifts in consumer spending habits could impact Bally’s ability to achieve its strategic objectives. Moreover, the company’s reliance on debt to fund expansion poses additional financial risks if market conditions change unfavorably.
Despite these challenges, Bally’s is poised to make significant strides in its growth strategy, leveraging its new financial resources to pursue its ambitious plans. As the gambling industry continues to evolve, Bally’s strategic investments and partnerships could position it as a leading player in the highly competitive New York market.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
