Bally’s Corporation Commits to Standard General Merger Agreement

Bally’s Corporation has entered into a definitive merger agreement with Standard General L.P.—its largest common stockholder, under which Standard General will acquire all outstanding shares of Bally’s for $18.25 per share. This new chapter for Bally’s should bring fresh opportunities for the operator and create lasting growth for the company.

This Deal Should Significantly Expand Bally’s Footprint

The merger was unanimously recommended by a special committee of independent and disinterested directors of Bally’s Board of Directors, advised by independent financial and legal advisors. The full Board of Directors approved this action, emphasizing the immediate value delivered to stockholders by the cash consideration. This announcement saw shares of Bally’s soar nearly 26% in premarket trading.

Bally’s will merge with The Queen Casino & Entertainment Inc. (QC&E), a regional casino operator majority-owned by Standard General. QC&E currently runs four casinos across Illinois, Iowa, and Louisiana. The merger will increase Ball’s Casino & Resorts segment to 19 facilities across 11 states, significantly enhancing its development pipeline with several highly expected projects.

Standard General has secured $500 million in committed financing to support the merger. The cash proceeds, combined with Bally’s existing resources, will fund the cash consideration to stockholders. The transaction is subject to customary regulatory and other closing conditions and will likely close in the first half of 2025, barring any unexpected delays.

Shareholder Value Is a Leading Priority

According to Robeson Reeves, CEO of Bally’s, this merger will act as a growth driver for all three verticals, bolstering International Interactive, North America Interactive, and Casinos & Resorts. The four properties that QC&E is adding will increase Bally’s geographic and market diversity as the company looks forward to more revenues and growth in EBITDAR.

We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.

Robeson Reeves, Bally’s CEO

Soo Kim, managing partner of Standard General, emphasized the compelling cash premium and value certainty that Bally’s stockholders would receive. He noted that stockholders who do not sell their shares may have the potential for long-term growth prospects with the Combined Company, further highlighting how this strategic merger would bolster Bally’s growth profile.

We look forward to working with the Board of Directors and the Company’s senior management team as they continue to execute on their business plan.

Soo Kim, Standard General managing partner

Bally’s should soon host its usual conference call for second-quarter 2024 financial results but will not comment on the merger. With Q2 results expected no later than 31 July, the company will take the first step toward a historic strategic transaction, paving the way for a transformational expansion in the gaming and hospitality industry.