Bally's Secures $560M Loan for Bronx Casino Amid Financial Turmoil

Bally’s Corp. has secured a $560 million loan from WhiteHawk Capital Partners to complete construction on its Bronx casino. The loan will be used for pre-construction costs, with financing expected to close in the third quarter. Bally’s Chairman of the Board Soo Kim stated that the financing allows the company to progress the pre-construction planning process.

The Bronx casino project includes a $4 billion property adjacent to the Ferry Point golf course. The property will feature a 500,000-square-foot casino, 500-room hotel, spa, meeting space, a 2,000-seat event center, and shopping options.

Despite the loan, Bally’s faces significant financial challenges. The company has $4.5 billion in debt, and Executive Vice President and CFO Mira Mircheva resigned in August. The company issued a solvency warning in its second quarter report to the Securities and Exchange Commission (SEC) in August. Fitch Ratings gave the company a negative outlook, stating that leverage is not sustainable at current levels. Additionally, Bally’s paused construction on the hotel adjacent to a casino it is building in Chicago due to video gaming terminals (VGTs). Bally’s is also working on a project in Las Vegas, reportedly running behind schedule on its plans to build a casino adjacent to the future MLB stadium on the Strip.