To be, or not to be, a going concern – CDC Gaming

To write about Bally’s again so soon may seem like Bally bashing, but it is not. The issues raised by recent reports about Bally’s are big. In fact, the same issues hang over other major gaming companies with large debt. The public market used to be the way to raise money without debt, but to acquire or build new casinos requires significant capital investment. Large acquisitions or building new resorts requires assuming a large debt. The debt itself is tied directly to the project, but the cost of the money is related to the economy. The interest rate at any given time is dependent on the economy and the Federal Reserve, and as we have seen, getting the feds to lower the interest rate is not an easy proposition. Thus, due to…