Bally's Q2 Casino Revenue Up 2%, UK Tax Hike Looms Large
Bally's Corp. posted modest gains in its casino and online divisions for Q2 2026, but the near-doubling of the UK digital casino tax threatens to cut $39 million from cash flow.
Modest Gains Across the Portfolio
Bally’s Corp. closed out the second quarter of 2026 with casino revenues nudging two percent higher, according to an earnings release disclosed late Friday. The company’s Casinos & Resorts division brought in $401 million, compared to $393.3 million during the same period in 2025. Bally’s credited the improvement partly to its temporary Chicago casino, along with newer facilities in Baton Rouge and Marquette, Iowa.
Not everything was trending up. The company acknowledged “elevated competition” in East St. Louis, Illinois, and in Atlantic City. CEO Robeson Reeves said those headwinds were being offset by stronger performance in Chicago and at Bally’s Quad Cities. Rated play overall rose 4.3 percent across the portfolio.
The digital side of the business showed more velocity. North American online gambling produced $66.1 million, a 16.9 percent year-over-year jump that Bally’s attributed to what Reeves described as “healthy wagering revenue growth across all verticals.” The CEO credited Sina Miri and his team, saying in a prepared statement that their “customer-focused and automation initiatives” from the past year are now showing up in the financial results.
Meanwhile, the absorption of Intralot’s business-to-customer operations helped drive a 22.3 percent spike in Bally’s Intralot revenue, which reached $243.5 million for the quarter.
The UK Tax Problem
The earnings release carried a notable warning about the United Kingdom. The British government has nearly doubled its tax on digital casino revenues, raising the rate from 21 percent to 40 percent. Reeves put the expected hit to Bally’s cash flow at $39 million and made clear that marketing spending in the UK will be pulled back in response.
Despite that, Reeves struck a cautiously confident tone about the company’s UK trajectory. Constant currency year-over-year growth in the region accelerated from 10.5 percent in Q1 to 11.6 percent in Q2, and he noted the momentum carried into July with approximately 13 percent growth. “Importantly, we have delivered this quarter-on-quarter growth acceleration without incremental marketing spend,” Reeves wrote, calling it a testament to the strength of Bally’s player base and product.
On market consolidation in UK igaming, Reeves acknowledged it was not happening as fast as the company had expected. He framed it as an opportunity still ahead, writing that smaller operators would face increasing pressure after the World Cup and through the fall tax season. Bally’s position, he argued, is strengthened by already delivering double-digit growth before that consolidation wave arrives.
Big Projects, Bigger Questions
The earnings release was quieter on some of Bally’s most-watched development projects. The company said only that it “targets opening of the permanent casino in early 2027” for Bally’s Chicago, the $1.7 billion project, without addressing the construction slowdown that had been previously announced.
For the proposed $4 billion Bally’s Bronx development in New York City, the company revealed it signed a letter of intent during August with a potential equity investor as part of the project’s financing efforts. That news arrives as the Bronx project still sits in its earlier planning stages.
On the Las Vegas front, where Bally’s plans to build on the former Tropicana site adjacent to a new baseball stadium, Reeves said the firm is “actively progressing” work on the retail, entertainment, and dining complex. He noted the company is in advanced negotiations with potential partners but offered no specific timeline or deal details.
In the lottery segment, Reeves highlighted new contracts in Australia, Chile, and Greece. He also noted that the Ontario Lottery & Gaming Corp. selected Bally’s as its new technology-solution provider, adding another institutional anchor to a business line the company is clearly leaning on while its marquee construction projects take shape.
The $39 million UK tax bite may end up being the number analysts fixate on most heading into Q3. Two percent casino revenue growth is steady, but it does not leave a lot of cushion when a single regulatory change on one continent can erase that kind of cash.
How much did Bally's casino revenue grow in Q2 2026?
According to the company's earnings release, Bally's Casinos & Resorts division reported revenue of $401 million, up from $393.3 million in Q2 2025, a roughly two percent increase.
How will the UK's new digital casino tax affect Bally's?
CEO Robeson Reeves quantified the hit to Bally's cash flow at $39 million and warned that marketing cutbacks are on the way following the UK's increase of its digital casino tax from 21 percent to 40 percent.
What is the status of Bally's Chicago permanent casino?
The earnings release noted only that the company targets opening the permanent casino in early 2027, without directly addressing the previously announced construction slowdown at the $1.7 billion project.
How is Bally's North American online gambling business performing?
North American online gambling produced $66.1 million in Q2 2026, a 16.9 percent jump from the prior year, which Bally's attributed to healthy wagering revenue growth across all verticals.