Core Viewpoint - Bally's shares experienced a significant increase of 6.4% to close at $13.26, reflecting strong investor enthusiasm driven by strategic transformations and an improving business outlook [1][2]. Company Developments - The planned sale of Bally's International Interactive to Intralot for €2.7 billion is viewed as a value-creating move that enhances liquidity and strengthens the balance sheet [2]. - Progress on major development projects, including the permanent Chicago resort and the proposed Bronx casino, is reinforcing confidence in Bally's long-term expansion strategy [2]. - The interactive segment's improving performance and disciplined capital management are positively influencing market sentiment towards Bally's [2]. Financial Expectations - Bally's is expected to report a quarterly loss of $0.72 per share, which represents a year-over-year change of +63.8%, with revenues anticipated 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 that stock price movements may not sustain without trends in earnings estimate revisions [4]. Industry Context - Bally's is part of the Zacks Gaming industry, which includes other companies like Flutter Entertainment, which closed 2.7% higher at $256.3 but has seen a -14.6% return in the past month [4].

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]

Core Insights - Bally's Corporation announced plans for a new entertainment resort, Bally's Las Vegas, to be built on the Las Vegas Strip at the former Tropicana site, in partnership with JLL and Marnell Companies [1][2][4] Company Overview - Bally's Corporation operates 19 casinos across 11 states and has a growing omni-channel presence, including a sports betting platform and interactive gaming operations [7] - The company employs approximately 11,500 people and has rights to developable land in Las Vegas [7] Project Details - The Bally's Las Vegas project will feature two luxury hotel towers with a total of 3,000 rooms, a 2,500-seat entertainment venue, and over 500,000 square feet of retail, dining, and entertainment space [3] - The resort will include a casino and a VIP experience with direct access to the new Las Vegas Athletics MLB ballpark, aiming to blend sports and entertainment [3][4] Strategic Vision - The project is envisioned as a vibrant hub for international travelers and regional baseball fans, aiming to meet the growing demand for integrated entertainment in Las Vegas [4] - JLL will lead the retail and dining sourcing efforts, ensuring a mix of global brands and local favorites [5]

Core Insights - Gaming and Leisure Properties, Inc. (GLPI) has partnered with Bally's Corporation to develop an integrated casino resort in Chicago's River West neighborhood, featuring a 178,000 square-foot casino, a 500-room luxury hotel, and various entertainment options, with a total investment of $1.19 billion [1][8] - The project is expected to open in the fourth quarter of 2026, enhancing the local community and providing long-term value to GLPI's shareholders [1][8] Completed Project Milestones - Demolition of the Chicago Tribune buildings has been completed - Caissons have been inserted, and trench excavation is finished - A concrete pad has been connected to the hotel core, and a waterproofing membrane has been installed - Structural elements such as caisson caps and grade beams have been installed to support vertical construction - Crane 1 for steel erection has been assembled, with ongoing concrete pours for various foundational elements [6][12] Current Activities - Continued vertical construction of the hotel and casino is ongoing - Regular steel deliveries and erection activities for the casino structure are in progress - Installation of underground electrical and plumbing work is being conducted, along with inspections and backfilling around completed areas [6][12] Upcoming Activities - The project will continue with the fabrication of the hotel curtainwall system for both the hotel and casino - Further vertical construction activities are planned, including the preparation for additional column pours [12] About Gaming and Leisure Properties - GLPI focuses on acquiring, financing, and owning real estate properties to lease to gaming operators under triple-net lease arrangements, where tenants are responsible for all maintenance, insurance, taxes, and utilities [8] About Bally's Corporation - Bally's Corporation operates 15 casinos across 10 states and has a growing omni-channel presence, including online gaming and sports betting platforms - The company employs approximately 10,600 people and manages around 15,300 slot machines and 580 table games [9][10]

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis before making investment decisions [1][2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility observed in the tech sector [1]. - Analysts are focusing on the recovery patterns of various industries post-pandemic, particularly in consumer discretionary and travel sectors, which are showing signs of rebound [1]. Group 2: Investment Opportunities - There are emerging opportunities in renewable energy companies, driven by increasing government incentives and consumer demand for sustainable solutions [1]. - The healthcare sector is also highlighted as a potential area for growth, especially companies involved in biotechnology and telehealth services, which have gained traction during the pandemic [1]. Group 3: Risks and Considerations - Investors are advised to remain cautious of potential regulatory changes that could impact the profitability of certain sectors, particularly technology and finance [1]. - The article emphasizes the need for continuous monitoring of economic indicators that could signal shifts in market dynamics, affecting investment strategies [1].

Core Insights - Bally's Corporation has successfully completed its first Community Investment Program, allowing non-accredited local residents to invest in the Bally's Chicago casino and resort project, resulting in nearly 1,800 unique shareholders, including 1,007 from Chicago and 1,573 from Illinois [1] - The program is part of Bally's commitment to the City of Chicago and represents an innovative approach to public-private partnerships [1] - Bally's Chicago, Inc. plans to conduct additional rounds of placements in the future [1] Company Overview - Bally's Corporation is a global casino-entertainment company operating 19 casinos across 11 states, with additional properties including a golf course in New York and a horse racetrack in Colorado [4] - The company holds OSB licenses in 13 jurisdictions in North America and has expanded its international reach through the acquisition of Aspers Casino in Newcastle, UK [4] - Bally's operates a sports betting platform (Bally Bet), an iCasino platform (Bally Casino), and has a significant stake in Intralot S.A., a global lottery management business [4] Casino Resort Details - The Bally's Chicago Casino Resort will feature a 500-room hotel tower, 3,500 slots and table games, and various dining options, including a rooftop restaurant and bar [6] - Additional amenities will include a rooftop pool, spa, fitness center, a 3,000-seat theater, a two-acre park, and a 2,000-foot-long riverwalk, aimed at creating a vibrant gathering place for the community [6] - Bally's is currently operating the first and only temporary casino at the historic Medinah Temple in Chicago [6]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements reflecting the merger with Queen Casino & Entertainment, Inc [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects significant growth in assets, liabilities, and equity following the merger with Queen Financial Metric Comparison | Financial Metric | June 30, 2025 (Successor) | December 31, 2024 (Predecessor) | | :--- | :--- | :--- | | **Total Current Assets** | $489,977 thousand | $447,873 thousand | | **Total Assets** | $7,794,257 thousand | $5,860,137 thousand | | **Total Current Liabilities** | $993,911 thousand | $677,808 thousand | | **Total Liabilities** | $7,151,818 thousand | $5,829,235 thousand | | **Total Stockholders' Equity** | $642,439 thousand | $30,902 thousand | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported higher revenue but a significantly larger net loss for Q2 2025 compared to the prior year, driven by a large tax provision Quarterly Operational Performance | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 (Successor) | Three Months Ended June 30, 2024 (Predecessor) | | :--- | :--- | :--- | | **Total Revenue** | $657,534 | $621,657 | | **(Loss) income from operations** | $(2,437) | $5,573 | | **Net loss** | $(228,436) | $(60,196) | | **Basic loss per share** | $(3.76) | $(1.24) | | **Diluted loss per share** | $(3.76) | $(1.24) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow analysis shows significant use of cash in operations and investing, funded by financing activities Cash Flow Activity Summary | Cash Flow Activity (in thousands) | Period from Feb 8 to Jun 30, 2025 (Successor) | Period from Jan 1 to Feb 7, 2025 (Predecessor) | Six Months Ended Jun 30, 2024 (Predecessor) | | :--- | :--- | :--- | :--- | | **Net cash from operating activities** | $58,799 | $(80,186) | $39,699 | | **Net cash used in investing activities** | $(163,552) | $(17,697) | $(87,602) | | **Net cash provided by financing activities** | $119,695 | $97,988 | $59,802 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the accounting for the Queen merger, segment performance, and the subsequent sale of the International Interactive business - On February 7, 2025, the company completed its merger with The Queen Casino & Entertainment, Inc, accounted for as a **merger between entities under common control**[34](index=34&type=chunk)[41](index=41&type=chunk) - Subsequent to the quarter end, the company agreed to **sell its International Interactive business to Intralot S.A.** for approximately **€2.7 billion**[203](index=203&type=chunk) - The company has significant capital expenditure commitments, including approximately **$965.7 million remaining for the Bally's Chicago resort** and **$42.0 million for its Rhode Island properties**[178](index=178&type=chunk)[179](index=179&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, liquidity, and capital projects, focusing on the Queen merger and the planned Intralot sale - **Total revenue for Q2 2025 increased 6% year-over-year to $657.5 million**, driven by a 14.7% increase in the Casinos & Resorts segment from the Queen acquisition[241](index=241&type=chunk) - The company will use proceeds from the **€2.7 billion sale of its International Interactive business** to pay down secured debt and enhance liquidity[222](index=222&type=chunk) - Major capital projects, including Bally's Chicago, are advancing, with future funding expected through an agreement with **Gaming and Leisure Properties, Inc (GLPI)**[295](index=295&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Q2 2025 revenue grew due to the Casinos & Resorts segment, while net loss widened significantly due to a large income tax provision Q2 2025 vs Q2 2024 Performance | Metric (in millions) | Q2 2025 (Successor) | Q2 2024 (Predecessor) | | :--- | :--- | :--- | | **Total Revenue** | $657.5 | $621.7 | | **(Loss) from operations** | $(2.4) | $5.6 | | **Net loss** | $(228.4) | $(60.2) | - Segment Revenue Performance (Q2 2025 vs Q2 2024): * **Casinos & Resorts:** Revenue **increased by 14.7%** ($50.3 million), mainly due to the contribution from the Queen acquisition * **International Interactive:** Revenue **decreased by 10.2%** ($23.3 million), primarily due to the sale of the Asia business in late 2024 * **North America Interactive:** Revenue **increased by 21.5%** ($10.0 million), driven by iGaming expansion and optimized marketing[241](index=241&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by its credit facility and new debt, funding capital expenditures and investments Six-Month Cash Flow Summary | Cash Flow Summary (in thousands) | Six Months Ended June 30, 2025 (Combined) | Six Months Ended June 30, 2024 (Predecessor) | | :--- | :--- | :--- | | **Net cash from operating activities** | $(21,387) | $39,699 | | **Net cash used in investing activities** | $(181,249) | $(87,602) | | **Net cash provided by financing activities** | $217,683 | $59,802 | - In connection with the Queen merger, the company issued **$500 million in 11.00% Senior Secured Notes due 2028**[144](index=144&type=chunk)[279](index=279&type=chunk) - The company has significant capital commitments, with **$965.7 million remaining for the Bally's Chicago project** and **$42.0 million for Bally's Twin River**[294](index=294&type=chunk)[295](index=295&type=chunk)[297](index=297&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations on its variable-rate debt and foreign currency exposure from UK operations - The company is exposed to interest rate risk with **$2.13 billion of variable rate debt outstanding**; a hypothetical 1% rate increase would raise annual interest expense by approximately **$21.3 million**[302](index=302&type=chunk) - The company faces foreign currency risk from its UK operations, where revenues are primarily in **British Pound Sterling (GBP)**, and uses derivatives to manage this exposure[305](index=305&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to a material weakness in the International Interactive segment, with remediation underway - Management concluded that the company's disclosure controls and procedures were **not effective as of June 30, 2025**[306](index=306&type=chunk) - The ineffectiveness is due to a **material weakness** in the International Interactive segment concerning a lack of segregation of duties over journal entries[307](index=307&type=chunk) - Remediation efforts are underway, including the implementation of a **new ERP system in Q1 2025** to enforce proper segregation of duties[310](index=310&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=71&type=section&id=ITEM%201.%20Legal%20Proceedings) Ongoing legal proceedings from the ordinary course of business are not expected to have a material adverse effect on the company's financials - The company is party to various legal proceedings but does not expect them to have a **material impact** on its financial statements[314](index=314&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors were reported since the company's latest Annual Report on Form 10-K - **No material changes** to the company's risk factors were reported since the last Annual Report on Form 10-K[315](index=315&type=chunk) [Item 5. Other Information](index=71&type=section&id=ITEM%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2025 - No officers or directors adopted or terminated any **Rule 10b5-1 trading plans** during the three months ended June 30, 2025[316](index=316&type=chunk) [Item 6. Exhibits](index=72&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key agreements and required certifications

[Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20and%20Recent%20Highlights) Bally's reported **$657.5 million** in Q2 2025 revenue, a **5.8% increase** year-over-year, primarily driven by Casinos & Resorts and North America Interactive segments, with adjusted growth in International Interactive Q2 2025 Revenue by Segment (vs. Q2 2024) | Segment | Q2 2025 Revenue (in thousands) | Q2 2024 Revenue (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Casinos & Resorts | $393,333 | $343,051 | +14.7% | | International Interactive | $206,066 | $229,396 | -10.2% | | North America Interactive | $56,502 | $46,500 | +21.5% | | **Total Revenue** | **$657,534** | **$621,657** | **+5.8%** | - The company completed its merger with The Queen Casino & Entertainment on February 7, 2025, which contributed to the revenue growth[5](index=5&type=chunk) - Excluding the impact of the 2024 divestiture of its Asia interactive business, the International Interactive segment's revenue grew by **10.0%** year-over-year[7](index=7&type=chunk) [Management Commentary & Strategic Developments](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Developments) Management highlighted progress in "Bally's 2.0" transformation, including Chicago resort construction, the **€2.7 billion** Intralot S.A. agreement, **AUD 200 million** investment in Star Entertainment, and pursuit of a **$4 billion** Bronx resort license - Construction is in full swing at the permanent gaming and entertainment resort in Chicago, which will feature 3,400 slots, 170+ table games, and a 500-room hotel[6](index=6&type=chunk) - Announced a landmark agreement for Intralot S.A. to acquire Bally's International Interactive business for **€2.7 billion** in cash and stock[7](index=7&type=chunk)[8](index=8&type=chunk) - Made an **AUD 200 million** strategic capital investment in Star Entertainment Group Limited, a leading Australian gaming company[10](index=10&type=chunk) - Continuing to pursue a New York City gaming license for a proposed **$4 billion** casino and resort in the Bronx[11](index=11&type=chunk) [Segment Performance Review](index=2&type=section&id=Second%20Quarter%20Financial%20Review) Casinos & Resorts revenue grew **14.7%** to **$393.3 million**, North America Interactive revenue increased **21.5%** to **$56.5 million** with positive EBITDAR, while International Interactive revenue declined but showed underlying growth [Casinos & Resorts](index=2&type=section&id=Casinos%20%26%20Resorts) Casinos & Resorts revenue increased **14.7%** to **$393.3 million** due to the Queen merger, with Segment Adjusted EBITDAR growing **6.2%** to **$106.0 million** Casinos & Resorts Q2 2025 Performance | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $393,333 | $343,051 | +14.7% | | Segment Adjusted EBITDAR | $105,967 | $99,801 | +6.2% | - Growth was primarily driven by the addition of four regional gaming properties from the Queen merger earlier in 2025[12](index=12&type=chunk) - Strong performance was noted in Quad Cities, Vicksburg, and Baton Rouge, while properties in Shreveport, Evansville, and Dover experienced increased competition[12](index=12&type=chunk) [International Interactive](index=2&type=section&id=International%20Interactive) International Interactive revenue declined **10.2%** to **$206.1 million** due to divestiture, but grew **10.0%** on an adjusted basis, with Segment Adjusted EBITDAR up **1.1%** to **$82.2 million** International Interactive Q2 2025 Performance | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $206,066 | $229,396 | -10.2% | | Segment Adjusted EBITDAR | $82,205 | $81,292 | +1.1% | - U.K. online revenue rose **8.8%** (**2.8%** in constant currency) versus Q2 2024, driven by strong player retention and monetization[13](index=13&type=chunk) - Excluding the revenue from the divested Asia business, International Interactive revenue grew **10.0%** year-over-year[13](index=13&type=chunk) [North America Interactive](index=3&type=section&id=North%20America%20Interactive) North America Interactive revenue increased **21.5%** to **$56.5 million**, achieving positive Adjusted EBITDAR of **$2.5 million** from a prior-year loss North America Interactive Q2 2025 Performance | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $56,502 | $46,500 | +21.5% | | Segment Adjusted EBITDAR | $2,484 | ($2,196) | N/A (Turned to profit) | - The company is live with iGaming in New Jersey, Pennsylvania, Rhode Island, and Ontario[14](index=14&type=chunk) - The BallyBet sports offering is live in 13 states, including New Jersey and Ontario[14](index=14&type=chunk) [Financial Statements & Data](index=5&type=section&id=Financial%20Statements%20%26%20Data) This section provides detailed financial tables, including segment revenue, Adjusted EBITDAR, balance sheet data, cash flow information, and supplemental combined financial data for comparability [Revenue and Segment Adjusted EBITDAR](index=5&type=section&id=Revenue%20and%20Segment%20Adjusted%20EBITDAR) This section presents detailed revenue and Segment Adjusted EBITDAR breakdowns for Q2 and six months ended June 30, 2025, comparing Successor, Predecessor, and Pro Forma combined results Revenue & Adjusted EBITDAR (Successor/Predecessor) | (in thousands) | Three Months Ended Jun 30, 2025 (Successor) | Three Months Ended Jun 30, 2024 (Predecessor) | | :--- | :--- | :--- | | **Total Revenue** | **$657,534** | **$621,657** | | Casinos & Resorts Adj. EBITDAR | $105,967 | $99,801 | | International Interactive Adj. EBITDAR | $82,205 | $81,292 | | North America Interactive Adj. EBITDAR | $2,484 | ($2,196) | Pro Forma Combined Revenue & Adjusted EBITDAR (Six Months) | (in thousands) | Six Months Ended Jun 30, 2025 | Six Months Ended Jun 30, 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$1,268,602** | **$1,353,863** | | Casinos & Resorts Adj. EBITDAR | $206,536 | $225,525 | | International Interactive Adj. EBITDAR | $159,340 | $164,824 | | North America Interactive Adj. EBITDAR | ($4,103) | ($4,139) | [Selected Financial Information (Balance Sheet & Cash Flow)](index=6&type=section&id=Selected%20Financial%20Information%20%28Balance%20Sheet%20%26%20Cash%20Flow%29) This section details key balance sheet items as of June 30, 2025, including **$174.6 million** in cash and **$3.58 billion** in long-term debt, alongside post-merger cash flow data Balance Sheet Data (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $174,567 | $171,233 | | Long-term debt, including current portion | $3,581,169 | $3,318,773 | Cash Flow Data (Successor Period: Feb 8 - Jun 30, 2025) | Item | Amount (in thousands) | | :--- | :--- | | Capital Expenditures | $79,422 | | Cash paid for capitalized software | $20,533 | | Cash payments for triple net operating leases | $69,983 | [Supplemental Unaudited Condensed Combined Financial Information](index=7&type=section&id=Supplemental%20Unaudited%20Condensed%20Combined%20Financial%20Information) This section provides supplemental combined financial information, integrating Bally's and Queen's historical results for enhanced comparability, and includes a reconciliation for Adjusted International Interactive revenue - The supplemental information combines historical results of Bally's and Queen to reflect the merger as if it occurred on January 1, 2024, for better comparability[36](index=36&type=chunk) Non-GAAP Adjusted International Interactive Revenue (Q2 2025 vs Q2 2024) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | International Interactive revenue (GAAP) | $206,066 | $229,396 | | Less: Revenue from divested markets | $0 | ($48,528) | | Less: Licensing revenue recognized | ($7,046) | $0 | | **Adjusted International Interactive revenue** | **$199,020** | **$180,868** | [Non-GAAP Financial Measures](index=3&type=section&id=Reconciliation%20of%20GAAP%20Measures%20to%20Non-GAAP%20Measures) The company utilizes non-GAAP measures, including Adjusted EBITDA and Segment Adjusted EBITDAR, to provide a clearer understanding of core operating results and facilitate period-to-period comparisons - Defines "Adjusted EBITDA" as earnings before interest, taxes, depreciation, amortization, non-operating income/expense, acquisition costs, share-based compensation, and other certain gains or losses[16](index=16&type=chunk) - Defines "Segment Adjusted EBITDAR" as Adjusted EBITDA plus rent expense associated with triple net operating leases, a key valuation metric for the Casinos & Resorts segment in the gaming industry[17](index=17&type=chunk)[18](index=18&type=chunk)

Core Insights - Analysts project that Bally's (BALY) will report a quarterly loss of -$0.23 per share, marking a 72.3% increase in losses year over year, with revenues expected to reach $653.85 million, a 5.2% increase from the same quarter last year [1] Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 3.1% in the past 30 days, indicating a reassessment of initial estimates by covering analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts estimate 'Revenue- Casinos & Resorts' will reach $394.25 million, reflecting a 14.9% increase from the prior-year quarter [5] - 'Revenue- International Interactive' is projected at $201.90 million, indicating a 12% decrease year over year [5] - 'Revenue- North America Interactive' is expected to be $56.85 million, showing a 15.5% increase year over year [5] Adjusted EBITDAR Estimates - 'Adjusted EBITDAR- International Interactive' is predicted to be $79.70 million, down from $81.29 million reported in the same quarter last year [6] - 'Adjusted EBITDAR- Casinos & Resorts' is expected to be $119.90 million, compared to $99.80 million reported in the same quarter last year [6] Stock Performance - Bally's shares have decreased by 14.1% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.9%, and the company holds a Zacks Rank 4 (Sell), indicating expected underperformance in the near term [6]

Core Viewpoint - Bally's (BALY) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Recent Performance and Future Outlook - For the fiscal year ending December 2025, Bally's is expected to earn -$1.65 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 28.4% over the past three months, indicating a positive trend in earnings expectations [8]. - The upgrade to Zacks Rank 1 places Bally's in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks are recognized for superior earnings estimate revisions [9][10].