Casino and resort operator Bally’s issued a warning that it may struggle to keep up with its debt burden over the next year, and there is “substantial doubt” about its ability to remain a going concern.

The company made the disclosure in its second quarter earnings report filed with the Securities and Exchange Commission (SEC).

In the filing, Bally’s said the company is “pursuing a number of financing alternatives to enhance its liquidity, including asset monetization, an equity sale, and debt financings.”

“While the company is actively engaged in discussions on several financing alternatives, the conditions and events raise substantial doubt about the company’s ability to continue as a going concern,” Bally’s said in the filing.

The company said it executed a term sheet in July for a loan that would fund the continued development of the Bally’s Bronx project and other corporate purposes, though the term sheet is non-binding, and the two sides are working toward a binding agreement.

“These plans have not been finalized, are subject to market conditions and the actions of third parties, are not within the company’s control and there can be no assurance that the plans will be successfully implemented,” Bally’s explained, adding that those plans don’t alleviate substantial doubt about its ability to remain a going concern.

Companies are required to include a going concern warning in its financial filings when auditors see that the company faces the risk of failing or being forced into bankruptcy within the next year.

Bally’s filing noted several factors that may influence its outlook and performance, including unexpected costs from its construction projects, risks from rapid growth, the impact of digitization of gaming on casino operators and the company’s expansion into digital gaming, as well as regulatory compliance costs and other matters.

As of the end of June, Bally’s owned and operated 20 casinos globally, including some in the United Kingdom and in 11 U.S. states, as well as a golf course in New York and horse racetracks in Colorado and Wyoming.

It also operates the Bally Bet Sportsbook & Casino, an iCasino and sportsbook licensed in 14 North American jurisdictions, and it holds a majority interest in Bally’s Intralot.

The company has rights to developable land in Las Vegas at the former site of the Tropicana Las Vegas and has a license to build a full-scale casino and resort in The Bronx, New York. 

It’s also developing Bally’s Chicago, an integrated resort in the Windy City, though it recently paused construction on some portions of the project amid the uncertainty.

Shares in Bally’s stock have declined over 35.9% over the past five trading days since the warning.

The company’s stock is down just 4.9% over the last year, but has fallen more than 46.8% since the start of 2026.

Bally’s shares are down 0.79% during Wednesday’s trading session.