What Happened?
Shares of gaming, betting and entertainment company Bally's Corporation (NYSE: BALY) fell 4.8% in the afternoon session after its bid for a New York casino license was all but ended after the New York City Council rejected the company's land-use rezoning proposal for its planned $4 billion Bronx casino.
The council voted 29-9 to disapprove the zoning changes necessary for Bally's to build its proposed casino resort at Ferry Point Park. The project's failure to secure this key approval is a major blow to the company's ambitions to enter the lucrative downstate New York market, for which only three casino licenses are available. Councilwoman Kristy Marmorato, who represents the district, led the opposition, stating the developers "came to the table a little too late, with promises too vague and a process too flawed to rebuild the trust that was already lost in our community." The decision casts significant doubt on the future of the proposed development, which was set to include a 500-room hotel and a 2,000-seat entertainment venue.
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What Is The Market Telling Us
Bally’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Bally's is down 49.1% since the beginning of the year, and at $9.90 per share, it is trading 55.1% below its 52-week high of $22.07 from November 2024.
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