Bally's credit downgrade won't stop company pursuing Peterborough casino
Rhode Island-based Bally's Corporation has received its third credit rating downgrade this week, with Fitch Ratings on Monday downgrading the casino company's outlook to "B" from "B+."
Non-investment grade means Bally's has a "negative" outlook due to its dire financial position. The company is seeking to raise $800 million to fund its $1.1 billion casino resort project at Liberty Center in downtown Chicago.
Bally hopes to join Chicago in building a smaller casino near the Penn State campus in Pennsylvania. Bally officials have also expressed interest in building a casino in Virginia if the opportunity arises in Petersburg.
Bally's 2021 Richmond casino bid was not selected by local officials in Virginia's capital city. Richmond's casino plan was ultimately rejected by the city's voters.
Legislative efforts have since resulted in the Richmond casino license being moved to Petersburg, about 25 miles south.
The Virginia General Assembly passed a law last month allowing the Petersburg City Council to submit a casino resort proposal, but the bill has not yet been signed by Gov. Glenn Younkin (R). The governor has until April 8 at 11:59 p.m. ET to respond to the measure.
Bally's remains interested in St. Petersburg
Fitch joined three major credit rating peers - Moody's and Standard & Poor's - in downgrading Bally's. Despite the downgrade, Bally executives told The Progress-Index that the rating change would not affect the company's ability to participate in the bidding process if it were to take place in St. Petersburg.
We remain committed to our proposal to build a world-class casino resort in Peterborough,” a Bally’s spokesperson wrote in an email to the Peterborough News Service.
“However, the success of this proposal is dependent on the city’s approval of our choice and city voters’ approval in the November referendum,” Bally’s press release continued. "We are optimistic and look forward to the next steps."
While Bally's may still be able to bid for a Peterborough casino license, if the city gets approval to proceed to a competitive bidding phase, the city council may be wise to turn to a competitor given the company's situation.
It's unclear how many companies might bid for a Petersburg casino, but Maryland-based Cordish Companies has expressed interest. Cordish is launching a $1.4 billion mixed-use project in Peterborough in late 2022 that also includes a casino resort. The project will span several construction phases over multiple years.
Youngkin's mother in "Casino Bill"
Youngkin reviewed hundreds of bills passed by the Virginia General Assembly during the 2023 legislative session, including Senate Bill 628. The legislation seeks to qualify Peterborough as a commercial casino site.
Virginia has four other cities that allow casinos: Norfolk, Portsmouth, Bristol and Danville.
Rumors have swirled in Richmond recently that the governor may use Petersburg's casino law to drum up support for his Potomac Yards entertainment district. But the item is no longer on the table after billionaire Ted Leonsis agreed last week to build his professional sports teams in Washington, D.C., effectively ending the Potomac Yards project.
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Source: www.casino.org
