Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended September 30, 2025, for Bally's Corporation. The reporting period is split into a "Predecessor" period (January 1, 2025, to February 7, 2025) and a "Successor" period (February 8, 2025, to September 30, 2025) following the completion of the merger with The Queen Casino & Entertainment, Inc. on February 7, 2025. The Company operates three reportable segments: Casinos & Resorts, International Interactive, and North America Interactive. A significant subsequent event occurred on October 8, 2025, when the Company sold its International Interactive business to Intralot S.A. for approximately €2.7 billion, resulting in a 58% controlling stake in Intralot.
Key Financial Metrics
| Metric | Q3 2025 (Successor) | Q3 2024 (Predecessor) | YTD 2025 (Combined) | YTD 2024 (Predecessor) |
|---|---|---|---|---|
| Total Revenue | $663.7 million | $630.0 million | $1,690.0 million | $1,870.1 million |
| Net Loss | $(106.2) million | $(247.9) million | $(300.1) million | $(482.0) million |
| Adjusted EBITDA | $130.6 million | $137.7 million | $343.1 million | $384.3 million |
| Cash and Cash Equivalents | $160.7 million | $171.2 million (Dec 31, 2024) | Total Cash & Restricted: $239.9 million | |
| Long-Term Debt (Net) | $3.72 billion | $3.30 billion (Dec 31, 2024) | Includes $500M 2028 Notes issued in Feb 2025 | |
| Operating Cash Flow | $(29.8) million (YTD Successor) | $76.2 million (YTD Predecessor) | Net cash used in investing: $(235.7) million |
Material Changes vs. Prior Period
- Revenue Growth: Q3 2025 revenue increased 5.4% year-over-year to $663.7 million, driven by the inclusion of Queen properties ($58.6 million contribution in Q3) and growth in North America Interactive, partially offset by a 6.9% decline in International Interactive revenue due to the prior year sale of Asian operations.
- Profitability Improvement: Net loss narrowed significantly to $106.2 million in Q3 2025 from $247.9 million in Q3 2024. This improvement is largely attributable to the absence of a $150 million loss on sale-leaseback and $80.1 million in accelerated depreciation related to the Tropicana Las Vegas closure recorded in the prior year.
- Expense Increases: General and Administrative expenses rose 6.9% in Q3 2025, primarily due to integration costs for the Queen merger and additional operating costs for the new properties.
- Debt Structure: The Company issued $500 million in 11% Senior Secured Notes in February 2025. Subsequent to the quarter end, the Company utilized proceeds from the Intralot transaction to pay down $500 million of secured indebtedness and fully repay the Revolving Credit Facility.
Guidance, Outlook, and Risks
- Strategic Transactions: The sale of the International Interactive business to Intralot (completed October 2025) unlocks liquidity and positions the Company as a controlling shareholder in Intralot. The Company is currently evaluating the accounting impact of this transaction and subsequent debt paydowns.
- Chicago Development: The Company entered into a new Master Lease Agreement with GLP for the Bally's Chicago permanent facility, securing up to $940 million in development advances. The temporary casino is operational, with the permanent resort expected to open in 2026.
- Internal Controls: Management disclosed that disclosure controls and procedures were not effective due to a material weakness in the International Interactive segment regarding segregation of duties over journal entries. Remediation efforts include the implementation of a new ERP system in Q1 2025.
- Market Risks: The Company faces exposure to interest rate fluctuations on variable-rate debt and foreign currency exchange risks, particularly regarding GBP operations. A 1% increase in interest rates would increase annual interest expense by approximately $22.7 million.
Investor Verification Checklist
- Merger Accounting: Verify the final purchase price allocation for the Queen merger and the impact of the "push-down" accounting on asset valuations and goodwill.
- Intralot Transaction Impact: Confirm the final accounting treatment of the International Interactive sale and the resulting 58% equity interest in Intralot, including any goodwill or impairment charges in Q4 2025.
- Debt Covenants: Review compliance with debt covenants following the significant debt paydowns executed in October 2025 using Intralot proceeds.
- Internal Control Remediation: Monitor the effectiveness of the new ERP system in remediating the material weakness regarding journal entry segregation of duties.
- Chicago Project Funding: Track the drawdown of the $940 million GLP development advances and the associated increase in lease liabilities.