Bally’s Revenue Rises 21 Percent as Casino Operator Navigates Debt and Project Delays
Bally’s Revenue Rises 21 Percent in Third Quarter – Casino Operator Navigates Persistent Debt and Project Delays
Key Takeaways
- Third-quarter revenue reached $807.6 million following a 55 percent increase in combined Intralot business operations.
- The company faces project timeline shifts and will seek an extension from the U.S. Securities and Exchange Commission for its full financial report.
- Adjusted net debt climbed to approximately $1.81 billion by the end of September following an Australian monitoring license investment.
- Bally’s proposed acquisition of William Hill owner evoke faces regulatory delays and is now pushed to the first quarter of 2027.
Strong Intralot Performance Drives Overall Revenue Growth
Bally’s Corp. recorded a 21 percent year-over-year increase in preliminary third-quarter revenue, reaching $807.6 million. Combined business-to-business and business-to-consumer revenue from its Intralot operations surged 55 percent to $333.9 million. This growth came despite an adjusted EBITDAR decline of 3 percent to $89.1 million for the same Intralot segment.
Intralot’s consumer-facing business revenue climbed 22.8 percent to $257.5 million. Growth in the United Kingdom and the integration of Intralot’s specific consumer business contributed to this rise. Segment-adjusted EBITDAR for the consumer division dropped from $86.4 million down to $77.0 million. The business-to-business segment of Intralot posted $76.6 million in revenue, up significantly from $5.5 million a year earlier.
Group adjusted EBITDAR increased 2 percent to $179.6 million according to the preliminary figures. The operator has not yet published its full quarterly results. Management plans to seek another filing extension from the U.S. Securities and Exchange Commission. Bally’s shares fell approximately 4 percent on Tuesday to close at $11.47, bringing the year-to-date decline to 31 percent.
Regulatory Costs Impact European Margins Amid Regional Expansion
Financial indicators over the first nine months showed revenue rising from €263.9 million to €830.3 million. Adjusted EBITDA reached €273.6 million for the nine-month period. Quarterly adjusted EBITDA stood at €88.9 million, compared with €29.9 million in the previous year.
United Kingdom online revenue increased 12.2 percent during the quarter. Higher Remote Gaming Duty taxes reduced quarterly adjusted EBITDA by €34 million. Operational measures allowed the company to offset 55 percent of this tax impact.
Revenue in Spain rose 18.9 percent to €13.3 million. The United States business-to-business revenue declined 11 percent to €119.6 million during the first nine months. The proposed acquisition of William Hill owner evoke remains pending regulatory approvals and a Gibraltar court hearing, pushing the expected completion to the first quarter of 2027.
Domestic Casino and Interactive Operations Show Modest Gains
Casino revenue rose 3 percent to $408.6 million for the quarter. Land-based relocations in Baton Rouge and Marquette supported this upward trend. Segment EBITDAR for the casino operations remained flat at $107 million.
The North American interactive division reported a 25 percent revenue climb to $62.6 million. Financial losses for this interactive segment narrowed to $3.1 million from $6 million in the prior year. CEO Robeson Reeves stated that market conditions remain stable heading into the fourth quarter and 2027, noting improving execution across every segment.
Adjusted net debt stood at approximately €1.63 billion at the end of September. This marks an increase from the €1.619 billion reported in June. The rise follows an €85 million investment in a 15-year Australian monitoring license. The company also secured a £261.8 million loan in July, initially drawing down £157.1 million.
Major U.S. Development Projects Face Timeline Shifts and Funding Adjustments
Construction and planning delays persist across several flagship domestic properties. The planned $1.8 billion Chicago casino is now expected to open in 2027 after missing its original September deadline. Approximately 12 percent of the Chicago project is undergoing reassessment following the legalization of video gaming terminals in the city. The casino and its essential facilities remain scheduled for completion despite the adjustments.
Funding uncertainty surrounds the company’s $1.19 billion Las Vegas development. Gaming and Leisure Properties indicated potential financing of $200 million to $250 million. This capital injection remains subject to finalizing agreements between Bally’s and the Athletics baseball franchise.
The operator secured $560 million from WhiteHawk Capital Partners for its planned $4 billion Bronx casino. This facility is currently scheduled to open in 2030. The financing agreement makes $400 million immediately available for the project.
Australian Market Troubles Complicate International Strategy
Bally’s international portfolio faces scrutiny following its 2025 acquisition of a controlling stake in Australia’s Star Entertainment for $138 million. Star Entertainment currently faces a penalty of AU$260 million over historical anti-money laundering violations.
The Australian operator has exited its Brisbane joint venture, leaving active operations isolated to Sydney and the Gold Coast. Regulatory authorities have extended the suspension of the Star Sydney casino license until June 30, 2027.
Our Assessment
Bally’s third-quarter performance demonstrates a stark contrast between strong top-line revenue growth and underlying operational friction. The 55 percent revenue surge in the Intralot division and steady domestic casino operations highlight successful business integrations. The operator struggles with margin compression, as seen in the adjusted EBITDAR declines across key consumer segments and the heavy tax impacts in the U.K. market. Rising debt levels and extended timelines for multi-billion-dollar projects in Chicago and Las Vegas indicate substantial capital pressure. The regulatory hurdles delaying the evoke acquisition and the massive compliance penalties tied to Star Entertainment in Australia require careful management of international liabilities. The reliance on SEC filing extensions suggests ongoing internal reporting challenges that compound the broader market skepticism reflected in the 31 percent year-to-date share price decline.
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