Bally’s Corporation has issued a going concern warning after identifying financial pressures that could affect its ability to meet obligations over the next year. The disclosure came in the company’s second-quarter filing with the U.S. Securities and Exchange Commission, shortly after Bally’s Chicago paused construction work on several non-gaming elements of its planned riverfront casino complex.
The Rhode Island-based casino operator said it is exploring financing alternatives to improve liquidity, including asset sales, equity financing and debt arrangements. Bally’s stated that these measures are intended to support compliance with lender requirements connected to its revolving credit facility.
“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.
A going concern warning is required when auditors determine that a company could face difficulties continuing operations or meeting financial commitments within the following 12 months. Such disclosures can increase concerns among investors and other stakeholders.
Bally’s said the liquidity concerns are separate from the construction changes at its Chicago development. The company maintained that the permanent casino remains on track to open in early 2027.
Financing Plans And Chicago Casino Development
The company confirmed it is considering several options to strengthen its financial position. Bally’s said it had signed a non-binding term sheet in July for a loan that would support continued development of the Bally’s Bronx project and other corporate purposes. However, the company noted that the agreement remains subject to market conditions, third-party actions and further negotiations.
Bally’s operates 20 casinos globally, including properties in the United States and the United Kingdom. The company also operates Bally Bet Sportsbook & Casino across multiple North American jurisdictions and holds a majority interest in Bally’s Intralot.
The company’s filing highlighted several factors that could affect future performance, including construction expenses, expansion-related risks, digital gaming developments and regulatory compliance costs.
Shares in Bally’s declined more than 35.9% over the five trading days following the warning. The stock had also fallen more than 46.8% since the start of 2026.
Meanwhile, Bally’s Chicago has faced a separate dispute with city officials over video gambling terminals. The company paused work on non-gaming parts of the $1.7 billion development after arguing that the legalization of video gambling terminals in Chicago affected the terms of its agreement with the city.
According to CBS News, Bally’s said the slowdown does not reflect a lack of funding for the casino project.
“There has been no change to the status of Bally’s Chicago’s construction based off the company’s most recent 10-Q filing. Bally’s Chicago remains well situated to continue delivering on its obligations.”
The company added that the disclosure in its financial filing resulted from accounting requirements based only on secured funding available at the assessment date.
Construction Pause Linked To Video Gambling Dispute
Bally’s issued a reset notice in August to the construction group responsible for the Chicago casino complex, pausing work on several planned facilities. The affected areas included the 34-story hotel, events center and restaurant spaces.
The permanent casino project was selected by Chicago in 2022 and includes plans for a 500-room hotel, a 3,000-seat theater, restaurants and thousands of gaming positions. Bally’s has operated a temporary casino at Medinah Temple since 2023 while developing the permanent site.
The company said the casino opening remains scheduled for early 2027, although approximately 200 workers were affected by the construction slowdown.
Bally’s stated that the decision to adjust construction priorities resulted from the introduction of video gambling terminals and was unrelated to the accounting disclosure.
“As we have made clear, the legalization of VGTs has caused us to reset the construction priorities (and reconsider the timing to deliver some peripheral amenities). That decision is entirely separate from, and unrelated to, the accounting disclosure contained in the company’s 10-Q.”
Chicago aldermen have questioned both the legality of the construction slowdown and Bally’s ability to complete the project. A group of 28 aldermen requested a public hearing and called for the company to resume the full development.
The dispute centers on Chicago’s approval of video gambling terminals, which Bally’s argues conflicts with its 2022 host agreement. Illinois already operates one of the largest video gambling terminal markets in the country, with nearly 50,000 machines across more than 8,700 locations, according to the Illinois Gaming Board.
Bally’s Responds To Financial Concerns
Bally’s Chicago said it remains committed to meeting its obligations under the host agreement with the city.
The company explained that the going concern disclosure followed a technical accounting review and does not change its expectations for the Chicago casino launch.
“Bally’s maintains capital resources to continue to build and deliver on our obligations under the Host Community Agreement between the City of Chicago and Bally’s.”
Bally’s also said it continues to engage in discussions regarding the impact of video gambling terminals and their potential effects on the city’s finances, public safety funding and other areas connected to the host agreement.
The company’s SEC filing noted that financing plans have not been finalized and that there is no guarantee the proposed measures will be completed successfully.