Bally's says rating downgrades by investment firms won't affect Petersburg casino bid
PETERSBURG – One of the five vendors bidding on Petersburg’s proposed casino says that a major investment firm’s decision to lower its credit rating will not affect its attempt to secure the city’s gambling business.
“We remain confident in our proposal to construct a world-class casino resort in Petersburg, Virginia,” a Bally’s spokesperson wrote in an email last week to The Progress-Index. “The recent report issued by Moody’s does not hinder anything related to the proposed project.”
On March 25, Moody’s Investor Services announced it was downgrading the Bally’s Corp. credit rating from B1 to B2 in the wake of the Rhode Island-based entertainment giant’s recent money issues setting up a casino resort in Chicago. According to a statement from the firm, Moody’s claimed an upgrade “is not likely in the near term” until Bally’s demonstrates a plan to increase capital investment into not just its existing properties but also its future projects such as the Chicago casino and its planned rebooting of a casino and golf resort in New York state.
News of Bally’s downgrade was first reported by the Las Vegas Review-Journal, who also reported that S&P Global has downgraded its rating for Bally’s to junk-bond status.
An editorial March 11 in the Chicago Tribune said Bally's is in a tight spot with its new casino in the Windy City. The editorial said Bally's told the Nevada Gaming Control Board it was about $800 million shy cash-wise in its $1.3 billion resort proposal, but the company's chief executive officer told the board that shortfall will be addressed by the end of the summer “hopefully.”
The Moody’s report did not mention Bally’s bid on a Petersburg casino.
In its email to The Progress-Index, Bally’s said it essentially was too early to speculate on any impact of the rating downgrade because there are too many factors that need to be worked out that they cannot control.
“The success of this proposal, however, is contingent upon our selection by the city and the city's voters’ approval via referendum in November,” the company wrote. In addition, the legislation still must pass muster with both Gov. Glenn Youngkin and a special session of the Virginia General Assembly.
“We are optimistic and look forward to the next steps in the process,” said Bally’s spokesperson.
Senate Bill 628 would establish Petersburg as Virginia’s fifth casino host city, joining Bristol, Danville, Norfolk and Portsmouth – provided Petersburg voters approve a referendum to do so. The legislation sailed through the 2024 legislative session with only one hiccup after the House of Delegates tacked a re-enactment clause onto the bill, meaning it would have to be reapproved during a regular or special session of the Assembly.
Youngkin has until April 8 to sign, amend or veto the legislation. He told The Progress-Index during a recent appearance in Petersburg that he had some questions about the re-enactment clause but would not tip his hand on what he plans to do.
Sen. Lashresce Aird, D-Petersburg and chief co-sponsor of the legislation, said she was confident that questions about the re-enactment clause would be answered and the bill finalized in time for the November 2024 ballot. In the meantime, Aird is hosting a town hall meeting April 14 at the Petersburg Public Library where all five vendors will present their recommendations for Petersburg’s casino dreams.
Related: What's the opening line on vendors' chances to be Petersburg's casino partner?
Bally’s, The Cordish Companies, Penn Entertainment, Rivers Casino and the Warrenton Group are the finalists for the job. Cordish worked with Petersburg on its unsuccessful 2023 attempt to win legislative approval for the referendum.
Penn Entertainment operates the Hollywood Casino & Resort in Charles Town, West Virginia. Rivers Casino is hoping for a Petersburg sibling to its existing Portsmouth casino. The Warrenton Group reportedly has partnered with the Delaware North entertainment group for its casino bid here.
Bill Atkinson (he/him/his) is an award-winning journalist who covers breaking news, government and politics. Reach him at batkinson@progress-index.com or on X (formerly known as Twitter) at @BAtkinson_PI.
This article originally appeared on The Progress-Index: Bally's says drops in credit ratings irrelavent to Petersburg casino bid
