Bally’s Execs Tight-Lipped on Merger During Recent Earnings Call

Bally’s Corporation, the leading gaming and entertainment company with a strong presence in the United States, announced recently it has entered into a definitive merger agreement with its largest common stockholder, Standard General L.P. Despite the initial announcement, Bally’s executive didn’t discuss the topic during a recent earnings call on Wednesday.

Per the strategic deal, Standard General will acquire the outstanding shares in the company at a price of $18.25 per share. The multi-billion-dollar transaction will see Bally’s merge with The Queen Casino & Entertainment Inc., a regional gaming operator. Although it remains subject to regulatory approval, the $4.6 billion merger is expected to help Bally’s expand its presence in the country even further, benefiting from new growth opportunities.

On Wednesday, Bally’s released its second quarter financial report. The company disclosed financial insights regarding its performance for the three months ended June 30, 2024. However, Soo Kim, Bally’s chairman and co-founder of Standard General, wasn’t present during the recent call.

Robeson Reeves, Bally’s CEO, who was present during the earnings call, confirmed the company won’t be discussing the announced business combination with Casino Queen and the buyout by Standard General. He added that Bally’s won’t discuss the “special committee’s unanimous recommendation of the merger with cash consideration of $18.25 per share and the opportunity for rollover election by shareholders.”

Bally’s Reports 2.5% Revenue Growth in Q2

Focusing on the Q2 2024 report, Bally’s reported company-wide revenue of $621.7 million. Compared to the corresponding period in 2023, the latest result represented an increase of 2.5% year-over-year.

A breakdown of the total pointed to $49.2 million in North America Interactive revenue. This result represented a significant increase of nearly 95% year-over-year.

On the other hand, the revenue from casinos and resorts in Q2 this year also marked an increase. Overall, that revenue segment reached $343.1 million, representing an increase of 3% year-over-year.

Last but not least, UK online revenues reported by Bally’s during Q2 2024 also marked an uptick. In total, the company reported a 9% increase in UK online revenues.

Thanks to the recent merger, Bally’s is expected to grow its footprint to 11 states, offering supreme gaming and entertainment options via 19 venues.

The Company Launched Its Betting App in Maryland

In other news, Bally’s recently secured approval for the launch of its betting product by the Maryland Lottery and Gaming Control Commission (MLGCC), the gambling regulator in the state. This enabled the company to continue expanding the reach of its sports betting app.

Following testing, Bally’s confirmed the launch of the Bally Bet Sportsbook application for customers in Maryland. Brett Calapp, the chief operating officer for Bally’s Interactive in North America, revealed that the launch represents a milestone moment.

In his own words: “Our partnership with Ujima underscores our commitment to reflecting Maryland’s dedication to diversity and inclusion.” Maryland represented the ninth state where Bally’s betting app is available, allowing the company to reach more bettors than ever before.