Bally's issue going concern warning days after construction pause
Bally's executives raised an alarm about the company's financial health last week.
On Friday, Bally's issued what is known as a "going concern warning" to federal regulators, signaling the company doesn't have enough cash on hand to satisfy its lenders.
The warning is sometimes a prelude to a bankruptcy filing.
The filing comes days after Bally's paused construction on all non-gaming areas of its riverfront casino.
Bally's still expects their casino to open as scheduled in early 2027, saying, "Bally's Chicago remains well situated to continue delivering on its obligations."
Full statement from Bally's Chicago
"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 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. Bally's Chicago has consistently demonstrated its ability to execute this project, including advancing construction ahead of the original Host Community Agreement deliverable timeline. We remain focused and committed to opening the permanent casino in early 2027.
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. 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. 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 (VGTs)."
