Bally’s and its “corporate fireman” chairman Soo Kim have made a number of moves over the last several months that have left creditors and casual observers alike scratching their heads about its future and longer-term strategy. 

Fitch Rating's downgrade of Bally's Issuer Default Rating to B- from B and the alteration of the rating outlook to "negative" initially raised eyebrows. Add to that the company's high leverage, an uncertain future for its Chicago ventures, a surprising investment in a beleaguered Australian casino followed by another surprising investment in a Bronx school, and those around Bally’s have begun to wonder whether the company may have over played its hand and may soon explore avenues to decrease its high leverage or increase liquidity for all of its promised investments. To make matters worse, its most recent earnings release for the first quarter of 2025 reported a total revenue of $589.2m, a 4.7% decrease YoY. 

Adding to Bally’s potential strain, in December, the company announced the launch of Bally’s Chicago, of which it owns a 75% interest and requires approximately $450m in an investment from Bally’s. The company’s annual report notes that it intends to commence construction on the project in “early 2025”, but the company’s attempted IPO to fund approximately $250m of the project has faced a number of regulatory and litigation snags, which the company continues to contend with.