Bally’s Corporation Reports Mixed Q1 2025 Results
Bally’s Corporation reported first-quarter revenues of $589.2 million for the period ending March 31, 2025. This marks a year-over-year decrease of 4.7%, despite the integration of four new Queen Casino properties mid-quarter.
The financial update, following a series of transactions with Standard General and The Queen Casino & Entertainment, comes amid increased investor scrutiny, unresolved regulatory issues in Chicago, and a deepening strategic involvement in Australia’s Star Entertainment Group.
Financial Performance Highlights
The revenue decrease from $618.5 million in Q1 2024 was partially offset by a 1% increase in Casinos & Resorts revenue, reaching $351.2 million. The segment’s adjusted EBITDAR rose by 6.3% to $95.1 million, driven by the addition of the Queen properties starting February 8.
Bally’s CEO Robeson Reeves stated: “The integration expands the company’s scale and offers long-term growth opportunities through shared best practices and operational efficiencies.”
Challenges and Opportunities
However, Bally’s continued to face challenges in key markets, including Rhode Island, Atlantic City, and Chicago. While Reeves noted that marketing efforts have helped mitigate traffic impacts in Rhode Island and operational adjustments are underway at the temporary Chicago facility, Atlantic City’s performance is still under evaluation following recent leadership changes.
Interactive operations presented a mixed picture. International Interactive revenue fell 18.3% year-over-year to $191.7 million, a decline attributed to the company’s divestiture of its Asian operations in late 2024.
Excluding the divested unit, revenue grew 7.7%, led by a 4.9% increase in the UK and gains in Spain following the easing of advertising restrictions. Still, the segment’s adjusted EBITDAR fell 7.7% to $77.1 million.
In North America, interactive revenue increased 12.5% to $44.5 million, driven by contributions from the Queen interactive business and increased activity in Rhode Island, where digital gaming has helped offset local disruptions.
Bally’s currently operates iGaming in four jurisdictions—New Jersey, Pennsylvania, Rhode Island, and Ontario—and offers its BallyBet sportsbook in 11 states. Despite revenue growth, the segment recorded an EBITDAR loss of $16.5 million in the first quarter.
Balance Sheet and Capital Expenditures
As of March 31, Bally’s had $209.7 million in cash and reported net long-term debt of $3.43 billion. Capital expenditures increased to $46.8 million from $28 million a year ago, while lease obligations also rose, largely due to the financing agreement with Gaming and Leisure Properties, Inc. related to the permanent Chicago casino.
That project remains a work in progress. On May 2, the Illinois Gaming Board ordered a halt to construction after unauthorized subcontractors with alleged ties to organized crime were reportedly found on site.
Bally’s did not address the issue in its earnings release, offering only a brief note that construction continues with the support of GLPI. The company also refiled a prospectus for a Chicago-based IPO to meet minority ownership requirements, after a previous plan was not approved by the SEC.
Strategic Investments and Shareholder Communication
Further complicating its financial picture, Bally’s confirmed a reduced AUD $200 million ($129.43 million) investment in Star Entertainment Group, down from the original AUD $300 million (US$194.14 million) after Star’s largest shareholder, Bruce Mathieson, committed AUD $100 million (US$64.71 million) of his own investment.
Bally’s has so far funded AUD $67 million (US$43.36 million) of its commitment. Upon full conversion, the investment could give Bally’s a stake of up to 38% in the Australian gaming company.
Despite these strategic shifts, Bally’s again opted not to hold an investor conference call, a practice observed for the past three quarters. The company has cited various transactional and regulatory reasons on previous occasions but did not explain the absence this quarter. Investors can look to the upcoming annual shareholder meeting on Thursday for more information.
Bally’s shares closed at $11.21 on Monday, reflecting a year-to-date decline of more than 42%. Fitch Ratings recently downgraded the company’s issuer default rating to B- with a negative outlook, citing elevated leverage and execution risk tied to significant development projects and underperformance in its North American interactive division.
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