Experts Say Bally’s To Operate At A Loss Until 2025

Written By Corey Sharp on January 11, 2024
Image showing online casino gaming on a phone along with the Bally's logo and an arrow pointing down for a story about Bally Casino PA not reaching profitability until 2025.

Bally’s has been making moves and is one of the newest online casino operators in Pennsylvania. But just because Bally’s launched in the Keystone State, doesn’t mean the company is in the best financial position. The Earnings+More newsletter is projecting that the company won’t reach profitability until 2025.

The Q4 earnings calls for operators will take place at some point next month. Judging by Bally’s Q3 results, analysts appear to be onto something.

Bally’s Pennsylvania online casino entry doesn’t guarantee success

PA online casinos have proved to create the most powerful market in the country. Operators generated a revenue record of $191.9 million in November.

Bally Casino PA made a strategic move to launch in the Keystone State, and has contributed to Pennsylvania’s record-breaking performance. However, the company is not in the best financial position. In one of the latest Earnings+More newsletters, the publication wrote:

“The performance differential for online between Caesars and MGM on one side and Penn and Bally’s on the other will become clearer in 2024, according to the team at Jefferies. They pointed out the first two will be moving towards adj. EBITDA profitability this year and next while the latter pair are forecasted to suffer further losses.”

It continued:

“[Jefferies] added that Bally’s will ‘continue seeing’ negative EBITDA in North American interactive until FY25.”

This aligns with what Bally’s CFO, Marcus Glover, said during Q3 2023 earnings calls. Despite what Bally’s called an encouraging launch in the Keystone State, the company expects to lose $60 million at the EBITDA level in 2023 and $30 million this year. Bally’s CEO, Robeson Reeves, said it won’t break even until 2025.

Bally’s is feeling the effects of major investments so far. The operator partnered with White Hat Gaming to improve its player account management (PAM) processes. As a result, Glover announced the layoff of around 300 people in the near future.


What’s to come for Bally Casino PA?

Hopefully, Bally’s will turn around its fortune and the investments start paying off by 2025. The operator has been in the Keystone State for six months, posting the following revenue results:

  • June: $908,697
  • July: $1.9 million
  • August: $2.6 million
  • September: $2.2 million
  • October: $2.4 million
  • November: $2.6 million

In total, Bally’s has achieved $12.7 million in yearly revenue, with December’s performance to be announced next week by the Pennsylvania Gaming Control Board (PGCB).

After investing in White Hat Gaming, Bally’s hopes to see an upward trajectory with its financial position.

And it’s also possible that the company could have a retail location in Pennsylvania soon, pending legal disputes. Bally’s State College Casino is on hold due to lawsuits from the losing bidder, Stadium Casino. In the latest news, Stadium Casino filed legal documents last week to challenge Ira Lubert’s SC Gaming bid.

Once the legal proceedings end, construction on the casino near Penn State’s campus can begin, as Bally’s would then have an online and retail presence.

Bally’s could use each vertical to its advantage on the road to profitability.

Photo by PlayPennsylvania
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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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