NYSE:BALY
Bally's Corp
A distressed gaming conglomerate facing significant operational losses and debt challenges while attempting a strategic turnaround in the competitive US sports betting market.
Key Metrics
Investment Thesis
Bull Case
The stock could be an opportunistic value play if management successfully executes a debt restructuring or capital raise that restores liquidity while leveraging the company's strong digital growth trajectory. With revenue holding steady at $2.45B, any improvement in operating leverage or successful acquisition of distressed assets could lead to a dramatic equity re-rating upon stabilization.
Bear Case
The massive accumulated deficit of $1.12B and current liabilities exceeding current assets by over $230M indicate a precarious solvency position that poses an existential threat to the business model. Investors should avoid the stock given the lack of share repurchases, the inability to generate sustainable earnings, and the high probability of further dilution or asset sales required to meet debt obligations.
About Bally's Corp
Bally's Corporation operates as a gaming and hospitality leader across land-based casinos, digital sports wagering, and social gaming platforms. The company serves markets in the United States, Canada, and Europe through its extensive portfolio of properties and proprietary technology solutions. Key revenue streams include casino operations, online gaming subscriptions, and marketing services provided to third-party partners.
Analysis
Management Discussion
Despite a slight revenue stabilization at $2.45B in 2023 and 2024 compared to 2022's $2.26B, the company's financial health deteriorated sharply with net income plunging from a $187.5M loss in 2023 to a massive $567.8M loss in 2024. Operating cash flow of $114.0M was insufficient to cover the $287.8M outflow from financing activities and $794.5M in debt repayments, resulting in a net reduction of cash reserves from $315.3M to $231.3M over the period.
Industry Overview
The US iGaming and land-based casino industry is undergoing rapid consolidation as regulators legalize sports betting in new states, creating a crowded marketplace dominated by well-capitalized tech giants. Operators must balance physical real estate investments with heavy digital marketing spend to acquire users in an environment where customer acquisition costs are rising and regulatory compliance expenses are significant.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $2.26B | $2.45B | $2.45B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $2.26B | $2.45B | $2.45B |
| Operating Expenses | $2.55B | $2.35B | $2.71B |
| Operating Income | $-293.0M | $104.0M | $-258.3M |
| G&A | $774.9M | $1.11B | $1.04B |
| Stock-Based Comp | $27.9M | $24.1M | $14.8M |
| D&A | $300.6M | $350.4M | $379.5M |
| Depreciation | $300.6M | $350.4M | $379.5M |
| Amortization | $228.9M | $231.7M | $221.5M |
| Other OpEx | $1.77B | $1.23B | $1.67B |
| Non-Operating Income | $-161.5M | $-289.7M | $-294.2M |
| Interest Expense | $208.2M | $277.6M | — |
| Interest Income | — | — | $20.7M |
| Pre-Tax Income | $-454.5M | $-185.7M | $-552.5M |
| Income Tax | $-28.9M | $1.8M | $15.3M |
| Continuing Ops | $-425.5M | $-187.5M | $-567.8M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-425.5M | $-187.5M | $-567.8M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-425.5M | $-187.5M | $-567.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $522.7M | $572.3M | $447.9M |
| Cash & Equivalents | $212.5M | $163.2M | $171.2M |
| Accounts Receivable | $71.7M | $70.3M | $55.5M |
| Inventory | $14.2M | $14.6M | $19.3M |
| Prepaid Expenses | $100.7M | $108.1M | $115.5M |
| Other Current Assets | $123.6M | $216.1M | $86.4M |
| Long-Term Assets | $5.78B | $6.29B | $5.41B |
| PP&E (Net) | $1.20B | $1.17B | $630.7M |
| Intangibles | $1.96B | $1.87B | $1.31B |
| Goodwill | $1.75B | $1.94B | $1.80B |
| Operating Leases | $808.9M | $1.16B | $1.54B |
| Other LT Assets | $58.2M | $146.4M | $129.3M |
| Total Assets | $6.30B | $6.86B | $5.86B |
| Current Liabilities | $755.8M | $874.8M | $677.8M |
| Accounts Payable | $70.1M | $69.2M | $85.8M |
| Current Debt | $19.4M | $19.4M | $19.4M |
| Current Leases | $32.9M | $54.8M | $65.8M |
| Deferred Revenue | $62.3M | $66.3M | $71.3M |
| Taxes Payable | $56.0M | $78.3M | $25.5M |
| Other Current Liab | $-58.8M | $-65.0M | $-71.3M |
| Long-Term Liabilities | $4.74B | $5.35B | $5.15B |
| Long-Term Debt | $3.47B | $3.64B | $3.30B |
| LT Operating Leases | $803.2M | $1.15B | $1.55B |
| Other LT Liab | $465.7M | $558.9M | $297.6M |
| Total Liabilities | $5.49B | $6.23B | $5.83B |
| Shareholders' Equity | $806.2M | $635.9M | $30.9M |
| Paid-In Capital | $1.64B | $1.40B | $1.41B |
| Retained Earnings | $-535.4M | $-555.9M | $-1.12B |
| AOCI | $-295.6M | $-209.6M | $-260.3M |
| Treasury Stock | $0 | — | — |
| Total L&E | $6.30B | $6.86B | $5.86B |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-425.5M | $-187.5M | $-567.8M |
| Non-Cash Adjustments | $733.6M | $389.2M | $662.1M |
| Working Capital Changes | $-37.1M | $-13.1M | $19.6M |
| Cash from Operations | $271.0M | $188.6M | $114.0M |
| Capital Expenditures | $212.3M | $311.5M | $199.8M |
| Cash from Investing | $-302.9M | $-207.8M | $97.8M |
| Debt Issuances | $597.0M | $448.0M | $440.0M |
| Debt Repayments | $564.5M | $280.1M | $794.5M |
| Share Buybacks | $153.4M | $99.1M | $0 |
| Dividends Paid | $0 | — | — |
| Cash from Financing | $43.2M | $65.8M | $-287.8M |
| FX Effect | $-20.7M | $5.2M | $-8.0M |
| Net Change in Cash | $-9.7M | $50.1M | $-84.0M |
| Beginning Cash | $274.8M | $265.2M | $315.3M |
| Ending Cash | $265.2M | $315.3M | $231.3M |
Frequently Asked Questions
How does Bally's Corp make money?
Primary segments include land-based casino operations generating gross profit of $2.45B against total revenue of the same amount, digital sports wagering and online social gaming platforms driving recurring subscription revenue, and technology solutions providing marketing and data analytics services to external partners.
What are the main risks for BALY?
Severe liquidity constraints with total liabilities exceeding assets by nearly $5.4B and a net profit deficit of $567.8M, substantial debt burden totaling over $3.3B in long-term obligations requiring aggressive refinancing or restructuring, and intense competitive pressure from established operators like DraftKings and FanDuel driving down margins in the digital sports betting space.
What is BALY's competitive advantage?
Extensive proprietary technology stack enabling rapid deployment of digital betting products across multiple jurisdictions, a diversified portfolio spanning physical casinos, mobile apps, and social gaming that mitigates single-market risk, and deep historical knowledge of regulatory compliance in the complex US gambling landscape.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.