Bally’s Corporation has closed a $395 million sale leaseback deal with Gaming and Leisure Properties, cashing in on two of its real estate assets – Bally’s Kansas City and Bally’s Shreveport. The deal includes $388 million in cash, a $7 million equity component, and a $56 million reimbursement for recent property upgrades.
If this sounds like a company trying to buy itself some time, it’s because that’s exactly what it is. Bally’s is leaning heavily on asset monetization to keep cash flowing and reduce its mounting debt. With $350 million already drawn from its $620 million credit facility as of September, the proceeds from this deal will help chip away at that balance. The rest is earmarked for capital projects and general corporate needs.
Bally’s: A Storied Brand with Growing Pains
The company’s history stretches back to 1932, when it started as a pinball and slot machine manufacturer. Over the years, Bally’s became synonymous with arcade games, gaming innovation, and casino entertainment. Its name is still etched on historic properties like Bally’s Atlantic City, a landmark for anyone familiar with the East Coast gaming scene.
Today, Bally’s operates 15 casinos across 10 states, alongside its growing digital platforms – Bally Bet for sports betting and Bally Casino for iGaming. Internationally, they expanded into the UK with the acquisition of Aspers Casino. On paper, this multi-channel strategy should position Bally’s for success, but the company’s rapid expansion has come with a hefty price tag.
Financial Struggles Are Hard to Ignore
Heavy investment in new projects, coupled with sluggish returns, has put pressure on Bally's balance sheet. The company’s sprawling portfolio hasn’t yet lived up to expectations, and debt levels remain a significant concern.
To make matters worse, the Bally Sports venture—which licenses Bally’s name for regional sports networks—has turned into a cautionary tale. Diamond Sports Group, the parent company of Bally Sports, filed for bankruptcy earlier this year as viewership dropped and operational costs soared. While Bally’s doesn’t own the networks outright, the association has been a PR headache and a reminder that brand extensions come with real risks.
The collapse of Bally Sports hasn’t directly impacted the company’s casino or gaming operations, but it underscores a broader issue: Bally’s can’t afford any more missteps. Every part of its strategy, from digital gaming to physical casinos, needs to pull its weight to justify the company’s ongoing investment.
What’s Next for Bally’s?
Bally’s still has its sights set on big opportunities. The Chicago casino project remains a centerpiece of its growth strategy, and the recently announced merger with The Queen Casino & Entertainment will expand Bally’s presence into Iowa. Both moves could bring much-needed revenue streams, but they’re not without risk.
The challenge is clear: Bally’s has to prove that its investments—from flagship casinos to digital betting platforms like Bally Bet—can deliver sustainable returns. The sale leaseback deal buys the company time, but it’s a temporary fix. Long-term success will hinge on their ability to rein in costs, manage its debt, and execute its growth plans without overextending.
The Sale Leaseback Playbook
Bally’s isn’t the only gaming company turning to sale leaseback deals to free up cash. It’s become a go-to move in the casino industry, offering an immediate capital infusion in exchange for long-term rent obligations. For Bally’s, it’s a necessary lifeline that provides breathing room to stabilize operations and refocus on its core business.
Whether Bally’s can translate this cash boost into meaningful, long-term progress remains to be seen. But as the gaming sector continues to lean on creative financing solutions, the company’s ability to navigate its challenges will be one to watch.
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