Bally’s juggling several developments as Q3 revenue surges on Intralot growth
In a preliminary earnings report released late Monday, Bally’s Corp reported strong revenue growth in Q3 led mainly by the company’s Intralot B2B and B2C divisions. As has been the case for multiple quarters, Bally’s will file an extension with the Securities and Exchange Commission to file the full report at a later date.
Third-quarter group revenue was $807.6 million, a 21% increase year-over-year, while group adjusted EBITDAR ticked up 2% to $179.6 million. Casino revenue increased 3% to $408.6 million, which the operator attributed to landside moves at its Baton Rouge and Marquette riverboats, but segment EBITDAR was flat at $107 million.
Growth from Intralot was the key driver for Bally’s in Q3, as combined B2B and B2C revenue surged 55% YoY to $333.9 million. Despite the revenue gains, however, combined EBITDAR from the two units actually slipped 3% to $89.1 million.
Bally’s North American interactive revenue jumped 25% to $62.6 million, while segment EBITDAR pared its losses from $6 million last year to $3.1 million this year. Bally’s stock lost about 4% in trading Tuesday and closed at $11.47, bringing its year-to-date performance to -31%.
“Our development projects remain on track, our execution is improving results across every segment, and market conditions remain stable as we head into the fourth quarter and 2027,” Bally’s CEO Robeson Reeves said in a statement.
Trouble down under
As 2026 winds down, Bally’s is juggling several significant domestic and international developments. The company is in various stages of progress on projects in Chicago, New York City and Las Vegas, and its Australian investment, Star Entertainment, was just handed a A$260 million (US$178.5 million) from the federal government for historic anti-money laundering violations.
With regard to Star, Bally’s purchased a controlling stake in the beleaguered operator for $138 million in late 2025, while the federal AML case was still pending. Star was forced to exit its Brisbane joint venture due to financial difficulties and now operates just two properties, Star Sydney and Star Gold Coast. New South Wales regulators announced in September that Star Sydney’s licence will remain suspended until 30 June 2027, which is almost five years since it was initially suspended in 2022 for the offenses that led to the federal fine.
In a lengthy statement released 28 October, Bally’s said it “recognizes the seriousness of the historical conduct underlying the proceedings” and “welcomes the opportunity” for the company “to continue demonstrating the significant operational, cultural and regulatory changes that have taken place across the business”. The company noted that in the fourth quarter of fiscal year 2026, Sydney and Gold Coast revenue saw their biggest gains since at least 2024.
“The circumstances at The Star today are materially different from when we first became involved,” Bally’s Chairman Soo Kim said. “Bally’s has decades of experience operating casinos in highly regulated jurisdictions, and we believe that expertise, combined with the commitment of The Star’s leadership and team members, is making a meaningful difference.”
Sweet home Chicago?
In the US, Chicago is the closest to completion, followed by Las Vegas and New York. Bally’s $1.8 billion permanent Chicago casino was originally slated to open this September, but that has been pushed to 2027 after Illinois lawmakers granted a 12-month extension to its temporary licence over the summer.
Construction on the project has now been hampered again, as Bally’s paused work on certain non-gaming elements of the project in response to the city council’s legalisation of video gaming terminals in its annual budget. Officials told the council that the casino, event centre, required food and beverage outlets and 100 hotel rooms will be ready on time, but around 12% of the project is being reevaluated in response to potential VGT competition.
“Investors should view our actions through a straightforward lens: We are protecting the value of significant investments we’re making in Chicago while faithfully executing our contractual obligations,” Kim said on a conference call 14 September. “And let me say this again – we remain fully committed to Chicago.”
Bally’s biggest lender, Gaming and Leisure Properties, is not yet concerned with the construction hiccups. GLPI has nearly $1 billion committed to Bally’s Chicago and owns the real estate assets. On the company’s third-quarter earnings call last week, GLPI President Brandon Moore said the slowdown “doesn’t change how we view the market or how we ultimately think that property will perform”.
Searching for Strip solutions
Bally’s $1.19 billion mixed-use development on the Las Vegas Strip has seen little progress over the last year, and local stakeholders are growing impatient. The project is adjacent to the soon-to-be Las Vegas A’s MLB stadium, and there is concern that the team may need to build its own infrastructure on the site if Bally’s cannot secure additional funding.
The Las Vegas Stadium Authority, a municipal board that oversees the A’s and Raiders stadiums, met earlier this month to evaluate the status of Bally’s portion of the project, according to the Las Vegas Review-Journal. At the meeting, representatives from the A’s, Bally’s and GLPI discussed some potential solutions but did not come to any official agreements.
GLPI’s Moore said his company is willing to provide $200 million to $250 million in funding but that is “conditioned on a couple of business items being settled between Bally’s and the A’s”, per the Review-Journal. Sandy Dean, a senior advisor for the A’s, said the team is “needing to have a contingency plan” in light of the uncertainty.
Bally’s Bronx on the horizon
In addition to Las Vegas, Bally’s is also maneuvering money around for its NYC resort in the Bronx. The market represents a significant opportunity but the project’s $4 billion price tag is more than Chicago and Las Vegas combined.
Bally’s announced on 2 October that it closed $560 million worth of funding from WhiteHawk Capital Partners, with $400 million available immediately and $160 million in future draws.
“This important financing allows us to progress the pre-construction planning process so that we are ready to complete the remainder of the capital raise and remain on schedule,” Kim said in a statement at the time. “Furthermore, the additional liquidity provides us greater flexibility for other capital opportunities.”
Bally’s was considered a longshot to secure a downstate New York licence last year, but its conservative approach and the withdrawals of other high-profile bidders helped its chances. Its revenue projections were below other bidders, and its location in NYC’s poorest borough did well to promote community investment and economic impact. Bally’s Bronx is slated to open in 2030.