Bally’s locks in financing for $4bn Bronx casino
Bally’s has secured another major piece of the funding required to build its proposed $4 billion casino resort in the Bronx.
The US casino operator confirmed on October 2 that it had closed financing led by WhiteHawk Capital Partners to support pre-construction work on Bally’s Bronx.
The transaction provides an initial $400 million term loan, with the financing structure allowing Bally’s to draw up to $160 million more.
Bally’s intends to use the money for pre-construction and development costs associated with the enormous New York project, which they are aiming to open in 2030.
The proposed casino would be built at the current Bally’s Golf Links at Ferry Point in the Bronx and forms part of New York’s long-running process to award downstate commercial casino licences.
Bally’s proposal calls for a destination casino resort featuring gaming, hotel accommodation, entertainment, restaurants and other facilities.
The financing is significant because developing a New York casino requires substantially more than simply winning regulatory approval. Successful applicants must demonstrate they have the capital required to actually deliver projects expected to cost several billion dollars.
Bally’s said the new funding gives it greater flexibility as the project advances.
The company is itself in the middle of an unusually aggressive expansion program, with major development commitments extending beyond New York, with this placing increased attention on its balance sheet and ability to finance multiple large casino projects simultaneously.
New York is one of the largest untapped land-based casino markets in the United States, with downstate licences providing access to the enormous New York City metropolitan population.
Bally’s is competing for that opportunity against other major casino developers.
The financing doesn’t guarantee the company a casino licence and it doesn’t mean construction of the full $4 billion resort can immediately proceed. It does, however, give Bally’s hundreds of millions of dollars of committed capital to continue advancing the project.
