Bally’s is relatively new to the Pennsylvania online casino market. However, the company is starting to find its footing. During its Q1 2024 earnings report, the operator announced the first gross profit-positive month in the Keystone State.
Bally’s does not attract the attention that FanDuel, DraftKings and BetMGM get. However, Pennsylvania has shown it has room for smaller operators to thrive within the state.
Bally Casino PA has seen revenue increase in each month during Q1 2024, which appears likely to become an ongoing trend as the year continues.
Bally’s passes prominent Keystone State online casino operator during Q1
PA online casinos lead the US in gross revenue, and have for quite some time. In March, online platforms produced $233.1 million in earnings, setting a US record.
Despite the usual market leaders getting most of the attention, milestones such as those wouldn’t be possible without the contributions of smaller operators, including Bally’s.
It launched in July in the Keystone State with little fanfare. Often finishing last among online casinos, which is to be expected, Bally’s started to make some headway in Q1 2024, producing some of its best revenue totals. It crossed $4 million for the first time ever in Pennsylvania:
- January: $3.4 million
- February: $3.9 million
- March: $4.5 million
According to an investors presentation, the operator cited “significant expansion of player base driven by exceptional customer retention and a growing actives base” as a result for the bump in earnings. Bally’s CEO Robeson Reeves said on the call:
“Our North American interactive segment delivered a very strong quarter as we continue to capture an incremental large share of the iGaming market in New Jersey and Pennsylvania.”
The strong month in March put Bally’s ahead of PlayLive! Casino, which generated $4.3 million in revenue. It was the first time Bally’s placed ahead of PlayLive! Casino.
Bally’s is looking to catch Golden Nugget next, which registered $5.4 million in March revenue.
Operator looking to match New Jersey revenue output
The operator also offers an online casino in the Garden State. It has the luxury of an even larger customer base because of the retail presence it has in Atlantic City.
It’s not surprising that Bally’s performs better in New Jersey than Pennsylvania because of that.
Now that the New Jersey Division of Gaming Enforcement breaks down revenue by operator, Bally’s performance is easily detectable. Here are revenue results for Q1 in New Jersey:
- January: $5.5 million
- February: $6 million
- March: $6.3 million
Although the Pennsylvania Gaming Control Board does not break down revenue by operator, since Bally’s entered the PA market as a Qualified Gaming Entity (QGE), it did not have to partner with a land-based casino in the state. It is one of the rare occurrences in Pennsylvania where we get revenue results from a single operator.
The operator is on a similar trajectory in Pennsylvania and New Jersey. The next goal for Bally’s is the $5 million mark in the Keystone State. Perhaps it can catch its New Jersey performance.
Zacks Equity Research advises to hold Bally’s stock
Bally’s produced company-wide revenue of $618.5 million, an increase of 3.3% year-over-year. Its North American digital segment generated $41.5 million, up 70.2% year-over-year.
Despite the positive results, the company is still operating at a loss. The North American division incurred an adjusted EBITDA loss of about $30 million last year. Experts are predicting that Bally’s won’t reach profitability until 2025.
The stock has fluctuated over the past year. As of now, the price sits at $13.01, which is up from $7.77 on Nov. 1.
Zacks Equity Research did not paint an entirely bleak picture, saying:
“The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.”
