Core Viewpoint - Gaming and Leisure Properties, Inc. (GLPI) has acquired the real estate assets of Bally's Lincoln for $700 million, enhancing its portfolio and expected to be immediately accretive to its adjusted funds from operation (AFFO) per share [1][3][5]. Financial Summary - The initial cash rent for Bally's Lincoln is set at $56 million, reflecting an 8% capitalization rate and a purchase multiple of 12.5x [2]. - The pro forma rent coverage ratio is anticipated to exceed 2.2x, with a four-wall rent coverage of over 1.9x [2]. - The acquisition is primarily funded through debt, and GLPI's net debt to adjusted EBITDA ratio is expected to remain below the target range of 5.0x to 5.5x [3]. Property Details - Bally's Lincoln is situated on approximately 190 acres and features a casino of around 165,000 sq. ft., with approximately 3,900 slots and 118 table games, alongside hotel accommodations and a convention center [4]. - The property underwent a $100 million expansion in 2021, adding significant gaming and leisure facilities [4]. Strategic Implications - The acquisition strengthens GLPI's relationship with Bally's, adding a fifth property to the Bally's Master Lease II agreement, which extends to 2039 with four 5-year renewal options [2][5]. - Bally's Lincoln is recognized as one of the top-performing regional casino properties in the U.S., generating over $490 million in gross gaming revenue in 2025 [5].

Core Viewpoint - Gaming and Leisure Properties, Inc. (GLPI) has acquired the real estate assets of Bally's Lincoln for $700 million, enhancing its portfolio and expected to be immediately accretive to its adjusted funds from operation (AFFO) per share [1][3][5]. Group 1: Transaction Details - The initial cash rent for Bally's Lincoln is set at $56 million, reflecting an 8% capitalization rate and a purchase multiple of 12.5x [2]. - The acquisition adds Bally's Lincoln to GLPI's Master Lease II agreement, increasing the total number of properties to five, with a pro forma rent coverage ratio anticipated to exceed 2.2x [2]. - The lease term aligns with the existing Master Lease II, extending to 2039, and includes four 5-year renewal options, with rent escalation tied to the consumer price index (CPI) [2]. Group 2: Financial Impact - The transaction is primarily funded through debt, and GLPI's net debt to adjusted EBITDA ratio is expected to remain below the target range of 5.0x to 5.5x [3]. - The acquisition is projected to be immediately accretive to GLPI's AFFO per share, indicating a positive impact on financial performance [3][5]. Group 3: Property Overview - Bally's Lincoln is situated on approximately 190 acres and features a 165,000 sq. ft. casino with around 3,900 slots and 118 table games, along with 136 hotel rooms and a 29,000 sq. ft. convention center [4]. - The property underwent a $100 million expansion in 2021, which included the addition of a 40,000 sq. ft. gaming area and other amenities [4]. - In 2025, Bally's Lincoln generated over $490 million in gross gaming revenue, positioning it as one of the top-performing regional casino properties in the U.S. [5].

Core Viewpoint - New York City's proposed casinos have successfully passed a significant regulatory hurdle, moving closer to obtaining their licenses [1] Group 1: Regulatory Progress - The proposed casinos have cleared a major regulatory hurdle, indicating progress in the licensing process [1] - This advancement is crucial for the casinos as they aim to establish operations in New York City [1] Group 2: Industry Implications - The approval of these casinos could lead to increased competition in the gaming industry within the region [1] - The potential establishment of these casinos may also impact local economies through job creation and increased tourism [1]

Core Viewpoint - Queensland and New South Wales gaming authorities have approved a US-led rescue package for Star Entertainment Group, allowing Bally's Corporation and Investment Holdings to convert their $300 million debt into equity, significantly increasing their ownership stake in the company [1][5][10]. Regulatory Approvals - Queensland Attorney-General Deb Frecklington announced the necessary regulatory approvals for Bally's and Investment Holdings, confirming their suitability following an investigation by the Office of Liquor and Gaming Regulation [2][4]. - The NSW Independent Casino Commission (NICC) also granted approvals for Bally's to become a substantial shareholder of The Star, indicating that Bally's and its associated entities passed a rigorous assessment [5][7]. Financial Implications - The approvals will enable Bally's and Investment Holdings to convert their $300 million investment into equity, allowing them to have significant influence over The Star's casino operations in Queensland [5][8]. - Star Entertainment Group will also be able to nominate new members to its board as part of this deal, which is seen as a critical step towards financial stability [10][11]. Future Outlook - NICC chief commissioner Philip Crawford expressed anticipation that Bally's and Investment Holdings would soon proceed with their financial and operational commitments regarding The Star [8]. - Star's chair Anne Ward emphasized the importance of these regulatory approvals for the company's progress towards returning to suitability and achieving financial stability [10].

Company Overview - As of September 30, 2025, the company owns and manages 19 casinos across 11 states in the US and one casino in the UK, with a recent merger adding four additional casinos to its portfolio[224]. - The company completed a transaction with Intralot valued at approximately €2.7 billion, consisting of €1.5 billion in cash and newly issued shares, enhancing its liquidity and positioning for global growth[228][229]. - The company’s updated equity interest in Intralot post-acquisition is 58%, reflecting a controlling financial interest in the global lottery and gaming operations[229]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $663.7 million, compared to $1,689.9 million for the nine months ended September 30, 2025[243]. - Net loss for the three months ended September 30, 2025, was $106.2 million, while the net loss for the nine months ended September 30, 2025, was $300.1 million[243]. - Total gaming revenue for the three months ended September 30, 2025, was $544.5 million, while total non-gaming revenue was $119.2 million[247]. - Adjusted EBITDA was $130.6 million for the Successor three months ended September 30, 2025 compared to $137.7 million for the same period last year[258]. - The total Adjusted EBITDA for the three months ended September 30, 2025, was $130.6 million, compared to $137.7 million for the same period in 2024, indicating a decrease of 5.1%[262]. Operational Insights - The company is actively pursuing new gaming opportunities and reinvesting in existing operations, focusing on enhancing guest experiences to increase revenues at its casinos and resorts[225]. - The company’s strategy includes a significant focus on interactive gaming, which is seen as a strategic opportunity for future growth[225]. - The company’s business is organized into three reportable segments: Casinos & Resorts, International Interactive, and North America Interactive, allowing for targeted performance analysis[231]. - The company reclassified a component of the North America Interactive operating segment to better align with strategic growth initiatives[245]. Expenses and Costs - Gaming and non-gaming expenses as a percentage of total revenue were 44.0% for the three months ended September 30, 2025, and 44.1% for the period from February 8, 2025, to September 30, 2025[244]. - General and administrative expenses for the three months ended September 30, 2025, amounted to $292.5 million, representing 44% of total revenue[247]. - Total operating costs and expenses for the three months ended September 30, 2025, were 99.9% of total revenue[244]. - General and Administrative expense for the Successor three months ended September 30, 2025 increased 6.9% or $18.9 million from $273.6 million in the same period last year[250]. Cash Flow and Investments - Net cash used in operating activities for the Successor period was $29.8 million, compared to a net cash provided of $76.2 million for the nine months ended September 30, 2024[277]. - Net cash used in investing activities for the Successor period was $235.7 million, driven by an $83.7 million investment in the Star and $13.8 million for shares in Intralot[278]. - Net cash provided by financing activities increased to $300.9 million in the Successor period, up from $75.7 million for the nine months ended September 30, 2024, primarily due to higher net issuance of long-term debt[279]. - Capital expenditures for the Successor period from February 8, 2025, to September 30, 2025, were $146.6 million, compared to $155.8 million for the Predecessor nine months ended September 30, 2025[305]. Debt and Financing - The company issued $750.0 million of 5.625% senior notes due 2029 and $750.0 million of 5.875% senior notes due 2031 as part of its debt obligations[282]. - The Company entered into a credit agreement providing for a senior secured term loan facility of $1.945 billion, maturing in 2028[286]. - The Company executed a Third Amendment to the Credit Agreement, extending and increasing the revolving credit facility, with a portion maturing in 2028[289]. - The Company has a master lease agreement with GLPI requiring combined initial minimum annual payments of $101.5 million for certain properties[295]. Regulatory and Economic Factors - The company is subject to regulatory agreements that impose financial covenants and operational restrictions, impacting its ability to declare dividends and incur additional debt[235][236]. - Macroeconomic factors such as rising inflation and global economic challenges are identified as risks that could impact consumer spending and overall business performance[238]. Community and Sponsorship Commitments - The company is required to pay annual fixed host community impact fees of $4.0 million as part of the host community agreement with the City of Chicago[308]. - The host community agreement mandates a minimum capital investment of at least $1.34 billion for the design, construction, and outfitting of the temporary and permanent casino[309]. - As of September 30, 2025, the company has sponsorship commitments totaling $116.2 million, with contracts extending through 2036[310]. Currency and Interest Rate Management - The company has utilized operational hedges and derivative financial instruments to manage currency exchange rate fluctuations[316]. - A hypothetical 1% increase in the effective interest rate would result in an increase in interest expense of approximately $22.7 million over the next twelve months[313]. - Foreign currency transaction losses for the three months ended September 30, 2025, amounted to $32.1 million[316].

Revenue Performance - Total revenue for Q3 2025 was $663.7 million, a 5.4% increase from $630.0 million in Q3 2024[5] - Total revenue for the three months ended September 30, 2025, was $663,716,000, a significant increase from $220,498,000 in the same period of 2024, representing a growth of 200%[26] - Total revenue for the nine months ended September 30, 2025, was $1,932,318,000, down from $2,037,763,000 in the same period of 2024, indicating a decrease of 5.2%[29] - The pro forma combined revenue for the nine months ended September 30, 2025, was $1,932,318,000, reflecting the merger of Bally's and Queen, which provides a baseline for future comparative results[28] Segment Performance - Casinos & Resorts revenue reached $396.1 million, up 12.1% year over year, driven by the addition of four regional gaming properties from Queen[14] - Adjusted EBITDAR for Casinos & Resorts segment reached $107,920,000 for the three months ended September 30, 2025, compared to $23,554,000 in the same period of 2024, marking an increase of 358%[26] - Adjusted EBITDAR for the nine months ended September 30, 2025, was $314,456,000 for Casinos & Resorts, compared to $339,597,000 in the same period of 2024, a decline of 7.4%[29] - International Interactive revenue was $215.1 million, a decline of 6.9% year over year, primarily due to the divestiture of the Asia interactive business[7] - International Interactive revenue for the three months ended September 30, 2025, was $215,085,000, up from $78,985,000 in the same period of 2024, reflecting a growth of 172%[26] - North America Interactive revenue increased by 13.1% year over year to $49.9 million, reflecting growth in Rhode Island and strong online sports betting performance[16] Acquisitions and Strategic Initiatives - Bally's completed the acquisition of Intralot S.A. for €2.7 billion, resulting in a 58% ownership interest in Intralot[6] - The combined entity of Bally's International Interactive and Intralot is expected to generate approximately €1.1 billion in annual revenue with EBITDA margins exceeding 39%[8] - Cost-savings programs implemented post-Intralot acquisition are expected to yield over $15 million in annual savings[9] - Bally's aims to enhance its global presence as a gaming, lottery, and entertainment operator through strategic initiatives and capital resource management[13] Capital Expenditures and Financial Position - Long-term debt as of September 30, 2025, was $3,742,071,000, an increase from $3,318,773,000 as of December 31, 2024, representing a rise of 12.7%[31] - Capital expenditures for the nine months ended September 30, 2025, totaled $130,155,000, compared to $155,757,000 in the same period of 2024, a decrease of 16.5%[32] - Cash and cash equivalents as of September 30, 2025, were $160,689,000, down from $171,233,000 as of December 31, 2024, a decline of 6.5%[31] Development Projects - Bally's is developing a $4.0 billion casino in the Bronx, which is anticipated to create significant economic benefits and job opportunities[11] - Construction of a permanent gaming and entertainment resort in Chicago is underway, featuring approximately 3,400 slots and a 500-room hotel[10] Licensing Revenue - The company recognized $4,838,000 in licensing revenue for the three months ended September 30, 2025, compared to $3,720,000 in the same period of 2024, an increase of 30.2%[42]

Core Insights - Bally's Corporation is set to report its earnings results, with analysts expecting a revenue growth of 6.1% year on year to $668.5 million, following a previous quarter where it reported revenues of $657.5 million, up 5.8% year on year [1][2]. Revenue Performance - Last quarter, Bally's exceeded analysts' revenue expectations by 1%, but significantly missed adjusted operating income and EPS estimates [1]. - Analysts have generally maintained their revenue estimates for Bally's over the last 30 days, indicating a stable outlook heading into earnings [3]. Peer Comparison - In the casino operator segment, Boyd Gaming reported a year-on-year revenue growth of 4.5%, surpassing expectations by 15.7%, while Red Rock Resorts saw a revenue increase of 1.6%, falling short of estimates by 0.8% [4]. - Following their earnings reports, Boyd Gaming's stock declined by 7.3%, and Red Rock Resorts' stock fell by 11.8% [4]. Market Sentiment - Investors in the casino operator segment have shown stability, with share prices remaining flat over the past month. Bally's stock has increased by 41.6% during the same period, with an average analyst price target of $11.50 compared to its current share price of $18.56 [5].

Core Insights - Analysts project that Bally's (BALY) will report a quarterly loss of -$0.71 per share, reflecting a year-over-year increase of 64.3% [1] - Revenue is expected to reach $659.65 million, marking a 4.7% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment by covering analysts [1] Revenue Estimates - Analysts estimate 'Revenue- Casinos & Resorts' at $392.60 million, representing an 11.1% increase from the prior-year quarter [4] - 'Revenue- International Interactive' is projected to be $211.30 million, indicating a decline of 8.5% from the year-ago quarter [4] - 'Revenue- North America Interactive' is expected to reach $54.80 million, reflecting a 20% increase from the prior-year quarter [4] EBITDAR Estimates - 'Adjusted EBITDAR- International Interactive' is expected to be $82.90 million, down from $90.03 million reported in the same quarter last year [5] - Analysts project 'Adjusted EBITDAR- Casinos & Resorts' at $109.15 million, compared to $100.44 million from the previous year [5] Stock Performance - Over the past month, shares of Bally's have increased by 28%, while the Zacks S&P 500 composite has only risen by 1.3% [5] - Currently, Bally's holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Core Insights - Bally's Corporation will release its financial results for the third quarter ended September 30, 2025, after market close on November 10, 2025 [1] Company Overview - Bally's Corporation operates 20 casinos internationally, including 1 retail casino in Newcastle, UK, and has a presence in 11 states across the US [2] - The company also owns a golf course in New York, a horse racetrack in Colorado, and holds OSB licenses in 13 jurisdictions in North America [2] - Bally's operates a sports betting platform called Bally Bet, an iCasino platform, and has a significant stake in Intralot S.A., a global lottery management business [2] - The company serves over 11 million domestic and 20 million international customers through its loyalty programs [2] Operational Details - Bally's employs approximately 11,500 people and operates around 17,700 slot machines, 630 table games, and 3,950 hotel rooms [3] - The company has rights to developable land in Las Vegas at the site of the former Tropicana Las Vegas [3] Recent Transactions - Intralot S.A. has completed the acquisition of Bally's International Interactive business for an enterprise value of €2.7 billion, which is expected to unlock significant liquidity for Bally's [5] - Bally's has secured additional commitments to increase its revolving credit facility to $510 million, with a maturity date extended to October 1, 2028 [6] - The company has also announced amendments to its revolving credit facility, extending $460 million of commitments to a new maturity date of October 1, 2028 [7]

Group 1: Company Overview - Bally's shares increased by 17.8% in the last trading session, closing at $15.08, with notable trading volume [1] - The stock has also gained 17.8% over the past four weeks, indicating strong investor interest [1] Group 2: Strategic Developments - The stock rally is attributed to renewed investor confidence following the sale of Bally's international interactive business to Intralot S.A., which is seen as a strategic repositioning for digital and international expansion [2] - This transaction allows Bally's to maintain majority ownership while unlocking significant liquidity, enhancing its balance sheet and strategic flexibility [2] - Investors are encouraged by the potential for debt reduction and a sharper focus on high-growth gaming verticals, shifting sentiment from concerns over leverage to confidence in Bally's growth outlook [2] Group 3: Financial Expectations - Bally's is expected to report a quarterly loss of $0.72 per share, reflecting a year-over-year change of +63.8%, with revenues projected at $660.55 million, up 4.9% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [4] Group 4: Industry Context - Bally's holds a Zacks Rank of 3 (Hold) within the gaming industry, while another industry player, GDEV Inc., has a Zacks Rank of 1 (Strong Buy) [5] - GDEV Inc. is expected to report an EPS of $0.42, representing a decline of -46.8% from the previous year [6]