Bally’s Merger To ‘Drive Growth’ In Its PA Online Gambling Products, CEO Says

Written By Corey Sharp on July 26, 2024 - Last Updated on August 1, 2024
Bally's casino in Atlantic City. Bally's announced that its top investor acquired the company. However, the CEO says that growth is on the agenda and the PA market is key.

Bally’s Corporation announced on Thursday afternoon a merger that involves its largest common stakeholder, Standard General, L.P. Since the company that acquired Bally’s is a top shareholder, it doesn’t appear much is likely to change.

However, the move does suggest that The Queen Casino & Entertainment has plans for Bally’s retail and online presence, especially in Pennsylvania.

Bally’s is starting to build a bigger footprint in the Keystone State, with an improving online casino product, along with a land-based property the Pennsylvania Supreme Court approved earlier this week.

Growth still on Bally’s mind after new merger

Standard General, L.P. has already had influence in Bally’s as the company’s top shareholder. The transaction is not as extreme as it would have been if Bally’s had been purchased by an outside company.

Bally’s made the move because it delivered “meaningful and immediate value to stockholders,” according to Jaymin Patel, Chairman of the Special Committee.

Company CEO, Robeson Reeves, said the goal remains the same: continued growth.

“Our team is well positioned to continue to execute on our initiatives to drive growth across all our segments including in our International Interactive business, North America Interactive and our Casinos & Resorts segments, while proceeding with our development pipeline, including construction of our permanent casino resort in Chicago, for which we recently announced a comprehensive financing plan,” Reeves said in a press release.

There’s no doubt that Bally’s new property in Chicago has a lot do with the move. Bally’s has the rights to build the only casino in downtown Chicago, a project estimated to cost at least $1.7 billion. Last Friday, Bally’s announced a plan for that casino and funding for it.

However, Pennsylvania is also an important state for Bally’s, especially as it builds brand awareness in both the retail and online verticals.

Bally’s Nittany Mall casino is on the way after Supreme Court ruling

In a case that took nearly four years, Bally’s State College Casino has been cleared to start construction by the Pennsylvania Supreme Court. The Pennsylvania Gaming Control Board awarded a license to SC Gaming’s Ira Lubert back in September 2020.

The bid that exceeded $10 million beat out Stadium Casino, which also operates Live! Casino Philadelphia and Pittsburgh. Stadium Casino had contested that Lubert bid improperly. However, the Supreme Court ruled in favor of the PGCB and Lubert.

The PGCB confirmed to PlayPennsylvania that SC Gaming has not announced construction plans as of yet, but can start the process.

The Bally’s State College Casino is considered a Category 4 mini-casino, which includes up 750 slot machines and up t0 30 table games, for an additional $2.5 million.

PA online product continues to improve, can leverage retail casino, too

Bally Casino PA launched last summer as a Qualified Gaming Entity, which means it did not need to partner with a land-based casino. It took the operator several months get settled in the Keystone State.

Since the start of 2024, Bally’s has been consistently ascending among PA online casinos. Through June, it has produced the following revenue results:

  • January: $3.4 million
  • February: $3.9 million
  • March: $4.5 million
  • April: $4.7 million
  • May: $5.3 million
  • June: $4.3 million

With the exception of June, which can be chalked up to a slow month for most operators, Bally’s has increased revenue in every month. In April, Bally’s was the only licensee to improve earnings in the state, when everyone else’s decreased.

It’s clear that Bally’s is beginning to find its footing in the Keystone State. The company will soon be able to leverage the customers it acquires from its retail location and be able to cross-sell to promote both verticals.

Even though the transaction benefits shareholders, Reeves did not back away from Bally’s online and retail strategy. Growth in Pennsylvania is key to the company’s success.

Merger news sends Bally’s stock up 31%

News of the merger sent Bally’s stock price soaring on Thursday. Bally’s started the day trading at $13.51. After the announcement, Bally’s stock peaked at $17.75. It started Friday trading just below $17.

The price of Bally’s stock was as low as $9.74 in March of this year.

Photo by Wayne Parry / AP Photo
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Corey Sharp

Corey Sharp is the Lead Writer at PlayPennsylvania bringing you comprehensive coverage of sports betting and gambling in Pennsylvania. Corey is a 4-for-4 Philly sports fan and previously worked as a writer and editor for the Philadelphia Inquirer and NBC Sports Philadelphia.

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