Bally's Chicago Posts $26.6M Loss, Relies on Parent for Funding

TL;DR

**Bally's Chicago is a money pit right now, totally dependent on its parent to stay afloat while it builds a $900M casino.**

AI Summary

Bally's Chicago, Inc. reported a net loss of $26.6 million for the three months ended September 30, 2025, and a net loss of $72.3 million for the period from February 8 to September 30, 2025 (Successor period). Total revenue for the three months ended September 30, 2025, was $34.0 million, with gaming revenue at $30.4 million and non-gaming revenue at $3.6 million. The company incurred significant operating costs, including $15.0 million in management fees to Bally's Corporation for the quarter. Cash on hand as of September 30, 2025, was $9.1 million, a decrease from $14.5 million at December 31, 2024. The company has an accumulated deficit of $115.5 million and has been dependent on Bally's Corporation for funding, which has committed to fund operations through at least December 31, 2026. Construction costs for the Permanent Facility are estimated at approximately $0.9 billion over the next two years, posing a significant financial commitment.

Why It Matters

Bally's Chicago's continued significant losses and reliance on Bally's Corporation for funding through December 2026 signal a high-risk investment, particularly given the $0.9 billion commitment for the Permanent Facility. For investors, this highlights the speculative nature of the venture, with profitability heavily dependent on the successful completion and operation of the permanent casino. Employees and customers might see stability in the parent company's commitment, but the long-term viability of the Chicago project without sustained independent cash flow remains a concern. In a competitive casino market, delays or cost overruns could further erode market confidence and impact Bally's Corporation's broader financial health.

Risk Assessment

Risk Level: high — The company has incurred a net loss of $72.3 million and used $94.2 million in net cash from operations for the period from February 8 to September 30, 2025. It also has an accumulated deficit of $115.5 million and only $9.1 million cash on hand as of September 30, 2025. Furthermore, the company requires approximately $0.9 billion for the Permanent Facility construction over the next two years, with insufficient capital to fund obligations over the next twelve months, necessitating a letter of support from Bally's Corporation.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Monitor Bally's Corporation's financial health closely, as Bally's Chicago's viability is directly tied to its parent's continued funding commitment through at least December 31, 2026. Evaluate progress on the Permanent Facility construction and any shifts in projected costs or timelines, as these will be critical to future profitability.

Financial Highlights

revenue

$33,998,000

total Assets

$782,188,000

total Debt

$277,947,000

net Income

-$26,600,000

cash Position

$9,136,000

Revenue Breakdown

Key Numbers

• $26.6M — Net Loss (For the three months ended September 30, 2025)
• $72.3M — Net Loss (For the period from February 8 to September 30, 2025 (Successor))
• $94.2M — Net Cash Used in Operations (For the period from February 8 to September 30, 2025 (Successor))
• $115.5M — Accumulated Deficit (As of September 30, 2025)
• $9.1M — Cash on Hand (As of September 30, 2025, down from $14.5M at Dec 31, 2024)
• $0.9B — Permanent Facility Construction Costs (Estimated over the next two years)
• $34.0M — Total Revenue (For the three months ended September 30, 2025)
• $15.0M — Management Fees to Bally's Corporation (For the three months ended September 30, 2025)

Key Players & Entities

• Bally's Chicago, Inc. (company) — registrant
• Bally's Corporation (company) — parent company and primary funder
• City of Chicago (regulator) — host community agreement partner
• Standard General L.P. (company) — majority owner of SG Parent LLC, gaining control of Bally's Corporation
• The Casino Queen & Entertainment Inc. (company) — merged with Bally's Corporation
• $26.6 million (dollar_amount) — net loss for three months ended September 30, 2025
• $72.3 million (dollar_amount) — net loss for period from February 8 to September 30, 2025
• $94.2 million (dollar_amount) — net cash used in operating activities for period from February 8 to September 30, 2025
• $115.5 million (dollar_amount) — accumulated deficit as of September 30, 2025
• $0.9 billion (dollar_amount) — estimated total committed costs for Permanent Facility construction

FAQ

Risk Factors

• Significant Accumulated Deficit and Funding Dependence [high — financial]: The company has an accumulated deficit of $115.5 million as of September 30, 2025. It has been dependent on Bally's Corporation for funding, which has committed to fund operations through at least December 31, 2026, indicating a high reliance on external support.
• Substantial Construction Costs for Permanent Facility [high — financial]: Estimated construction costs for the Permanent Facility are approximately $0.9 billion over the next two years. This represents a significant financial commitment that will require substantial capital, potentially impacting future liquidity and profitability.
• High Management Fees to Related Party [medium — operational]: The company incurred $15.0 million in management fees to Bally's Corporation for the three months ended September 30, 2025. These fees represent a substantial portion of operating expenses and could impact profitability.
• Declining Cash Position [medium — financial]: Cash on hand decreased from $14.5 million at December 31, 2024, to $9.1 million as of September 30, 2025. This reduction in liquidity, coupled with significant operating losses, raises concerns about short-term financial flexibility.
• Gaming License and Regulatory Compliance [medium — regulatory]: As a casino operator, Bally's Chicago is subject to extensive gaming regulations and licensing requirements. Any non-compliance or changes in regulatory frameworks could lead to fines, sanctions, or operational disruptions.

Industry Context

The U.S. casino and gaming industry is highly competitive, characterized by significant capital investment, stringent regulatory oversight, and evolving consumer preferences. Companies often face pressure from established operators and new entrants, particularly in major markets. Trends include the integration of technology, expansion into new jurisdictions, and diversification of entertainment offerings beyond traditional gaming.

Regulatory Implications

Bally's Chicago operates under strict gaming regulations, requiring continuous compliance with licensing, operational, and financial reporting standards. Changes in state or local gaming laws, tax rates, or regulatory enforcement can significantly impact profitability and operational flexibility. Maintaining a strong relationship with regulators is crucial for sustained operations.

What Investors Should Do

1. Monitor construction cost overruns and financing for the Permanent Facility.
2. Assess the sustainability of operations given the current net losses and cash burn.
3. Evaluate the impact of management fees on profitability.
4. Analyze the significant increase in accounts receivable and its collectability.

Key Dates

• 2025-09-30: Balance Sheet Date (Successor) — Reflects the financial position after the acquisition, showing a significant increase in intangible assets and goodwill, and a decrease in cash and property/equipment compared to the predecessor.
• 2025-09-30: Statement of Operations Period End (Successor) — Covers the most recent quarterly performance, highlighting a net loss of $26.6 million on $34.0 million in revenue.
• 2025-02-08: Successor Period Start Date — Marks the beginning of the period under new ownership, following the acquisition.
• 2024-12-31: Balance Sheet Date (Predecessor) — Represents the financial position before the acquisition, showing higher cash and significant promissory notes to related party.
• 2026-12-31: Projected Funding Commitment End Date — Bally's Corporation has committed to fund operations through this date, providing a near-term financial runway.

Glossary

Successor

Refers to the entity after a business combination or significant change in ownership, in this case, Bally's Chicago, Inc. after its acquisition. (Distinguishes financial reporting periods under new ownership from prior periods.)

Predecessor

Refers to the entity before a business combination or significant change in ownership. (Provides comparative financial data from the period before the acquisition by Bally's Corporation.)

Accumulated Deficit

The cumulative net losses of a company over its lifetime that have not been offset by net income. (Indicates the company has historically operated at a loss, with a significant deficit of $115.5 million as of September 30, 2025.)

Redeemable Non-controlling Interest

Represents the equity interests of minority shareholders that have redemption features, meaning they can be repurchased by the company under certain conditions. (A significant liability of $536.6 million, indicating potential future cash outflows.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. (The $105.6 million in goodwill suggests a premium was paid during the acquisition, reflecting expected future benefits.)

Intangible Assets, net

Assets that lack physical substance but are identifiable and provide future economic benefits, such as licenses, permits, and brand value. (A substantial portion of the company's assets ($307.2 million), likely including gaming licenses and other acquired rights.)

Year-Over-Year Comparison

Compared to the prior period (December 31, 2024, Predecessor), Bally's Chicago, Inc. (Successor) shows a significant shift in its balance sheet structure post-acquisition. Total assets increased from $599.9 million to $782.2 million, driven by the recognition of goodwill and intangible assets, while property and equipment, and right-of-use assets decreased substantially. Liabilities also decreased from $910.5 million to $277.9 million, primarily due to the repayment of significant promissory notes to related parties. However, the company's cash position has declined from $14.5 million to $9.1 million, and it now carries a substantial redeemable non-controlling interest of $536.6 million.

Key Financial Figures

• $0.001 — ered Class A-1 common stock, par value $0.001 per share N/A N/A Class A-2 common sto

Filing Documents

• balc-20250930.htm (10-Q) — 1302KB
• ex101-bci_bchloanxq32025.htm (EX-10.1) — 26KB
• ex311-bciq32025.htm (EX-31.1) — 11KB
• ex312-bciq32025.htm (EX-31.2) — 11KB
• ex321-bciq32025.htm (EX-32.1) — 6KB
• ex322-bciq32025.htm (EX-32.2) — 6KB
• 0001935799-25-000010.txt ( ) — 8017KB
• balc-20250930.xsd (EX-101.SCH) — 54KB
• balc-20250930_cal.xml (EX-101.CAL) — 72KB
• balc-20250930_def.xml (EX-101.DEF) — 299KB
• balc-20250930_lab.xml (EX-101.LAB) — 617KB
• balc-20250930_pre.xml (EX-101.PRE) — 489KB
• balc-20250930_htm.xml (XML) — 1285KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (unaudited) 3 Condensed Consolidated Statements of Operations (unaudited) 4 Condensed Consolidated Statements of Stockholders' Deficit (unaudited) 5 Condensed Consolidated Statements of Cash Flows (unaudited) 7 Notes to Condensed Consolidated Financial Statements (unaudited) 9 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 ITEM 4.

Controls and Procedures

Controls and Procedures 38

- OTHER INFORMATION

PART II - OTHER INFORMATION 39 ITEM 1.

Legal Proceedings

Legal Proceedings 39 ITEM 1A.

Risk Factors

Risk Factors 39 ITEM 5. Other Information 39 ITEM 6. Exhibits 40

- Financial Information

PART I - Financial Information

Financial Statements

Item 1. Financial Statements BALLY'S CHICAGO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share data) September 30, 2025 (Successor) December 31, 2024 (Predecessor) Assets Cash $ 9,136 $ 14,519 Accounts receivable, net 136,625 1,470 Inventory 1,746 2,748 Prepaid expenses and other current assets 10,245 4,323 Due from related party (Bally's Corporation) 974 974 Total current assets 158,726 24,034 Property and equipment, net 39,360 172,747 Right of use assets, net 5,524 209,977 Goodwill 105,551 — Intangible assets, net 307,228 186,221 Other assets 165,799 6,926 Total assets $ 782,188 $ 599,905 Liabilities, Redeemable Non-controlling Interest, and Stockholders' Deficit Current portion of lease liabilities $ 4,766 $ 4,323 Accounts payable 40,368 11,397 Accrued and other current liabilities 35,071 12,563 Promissory notes to related party (Bally's Corporation) (Note 3) — 675,528 Due to related party (Bally's Corporation) (Note 3) 97,991 416 Total current liabilities 178,196 704,227 Long-term portion of lease liabilities 620 206,297 Subordinated loans due to related party (Bally's Corporation) (Note 3) 77,625 — Promissory notes to related party (Bally's Corporation) (Note 3) 14,493 — Deferred tax liability 2,576 — Other long-term liabilities 4,437 — Total liabilities 277,947 910,524 Commitments and contingencies (Note 12) Redeemable non-controlling interest 536,640 — Stockholders' deficit: Common stock, $ 0.01 par value, no shares authorized, issued or outstanding as of September 30, 2025 (Successor); 100 shares authorized, issued and outstanding as of December 31, 2024 (Predecessor) — — Class A common stock, $ 0.001 par value, 12,500 shares authorized, and 7,016 shares issued and outstanding as of September 30, 2025 (Successor); no shares authorized, issued or outstanding as of December 31, 2024 (Predecessor); Class B common stock, $ 0.001 par value, and 30,000 shares authorized, issued and

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