Bally’s Placed on ‘Rating Watch Negative’ by Fitch After Intralot Deal
Posted on: July 2, 2025, 04:23h.
Last updated on: July 2, 2025, 04:23h.
- Bally’s announced Tuesday it’s combining its international interactive unit with Intralot at an enterprise value of $3.17 billion
- Fitch says Bally’s at risk of ratings downgrade if leverage remains high or if it can’t release a Rhode Island casino to GLPI
Fitch Ratings placed Bally’s on “credit watch negative” today — a day after the regional casino operator announced a transaction involving its international interactive unit.
Under the terms of that deal, Bally’s is combining its international digital business with Greek lottery provider Intralot, resulting in $1.76 billion in cash flowing to Bally’s along with a 60% equity interest in the new version of Intralot. While that influx of capital could be used to shore up Bally’s Chicago casino project and reduce other liabilities, Fitch cautioned the operator’s credit rating of B- is at risk of downgrade if leverage remains elevated or if it can’t “release the Twin River property from its collateral pool.”
The company is obligated to contribute up to $450 million of additional funding to complete the Chicago project. Fitch expects the revolver to likely be used for funding, absent any potential asset sales,” notes Fitch. “The revolver matures in October 2026, introducing elevated refinancing risks.”
As of March 31, Bally’s had $135 million outstanding on a $620 million revolving credit facility and no debt coming due until 2028, but concerns about its credit worthiness have lingered for some time. It’s been just three months since Fitch downgraded the operator to B-, putting it just one notch above the highly speculative CCC segment.
Examining Bally’s Rhode Island Situation
In June 2022, Bally’s and Gaming and Leisure Properties (NASDAQ:GLPI) announced a transaction in which the casino landlord acquired the property assets of Bally’s Tiverton Casino & Hotel in Rhode Island with rights to buy the real estate of the operator’s other Rhode Island gaming venue — Bally’s Twin River Lincoln Casino Resort.
Under the terms of that deal, the real estate investment trust (REIT)has rights to acquire the Twin River venue by Sept. 30, 2026, but Bally’s needs approval from creditors or refinancing of its credit facility to allow that transaction to proceed.
“Starting Oct. 1, 2026, GLPI can purchase the property even if Bally’s has not obtained consents or refinanced,” adds Fitch. “The agreed sale price is $735 million, and GLPI will receive an annual rent payment of approximately $58.8 million with escalators. While the sale proceeds could ease Bally’s Chicago contribution burden, the covenant resolution remains uncertain.”
Execution of that transaction is a key part of Fitch’s ratings assumption on Bally’s and if there are issues that stand in the way of that deal, the seller’s financial flexibility could be hampered, potentially triggering a ratings downgrade.
Other Factors Affecting Bally’s Credit Rating
Fitch points out that Bally’s could position itself for a ratings upgrade by driving its earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) leverage below 6x and its EBITDAR fixed charge coverage ratio above 1.5x while resolving funding commitments tied to the Chicago integrated resort.
Conversely, the operator could be downgraded further into junk territory if its EBITDAR leverage exceeds 7x and its fixed charge coverage ratio drops below 1x. Fitch also characterized Bally’s domestic interactive business as a laggard, implying that unit is unlikely to be a driver of an improved credit profile over the near-term.
“Although the U.S. interactive business benefits the company’s product diversification, Fitch does not expect it to be a material credit driver in the near to medium term,” according to the research firm. “Bally’s is currently generating negative EBITDA in the segment, and Fitch remains uncertain as to how long it will take to achieve profitability given the number and intensity of its competitors.”
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