Bally Bet Secures Mobile Sports Betting License in Maryland and Expands to Nine States

In the bustling world of sports betting, Bally Bet Sportsbook has recently embarked on a notable journey, with its entry into the Maryland market marking a significant milestone. On a Monday in late July 2024, Bally Bet received the green light from the Maryland Lottery and Gaming Control Commission (MLGCC) to operate within the state. This approval comes after a successful demonstration of its platform, where the sportsbook’s systems and processes were put to the test.

The trial run, conducted the previous week, involved real bettors using the Bally Bet platform under the scrutiny of Maryland’s regulatory staff. The purpose of this trial was clear: to ensure Bally Bet adhered to all state requirements and that its technology functioned as expected. This process not only validated Bally Bet’s readiness but also marked a new phase in the sportsbook’s expansion strategy.

A Strategic Expansion

The launch in Maryland is Bally Bet’s second major state entry in July, following its debut in Massachusetts at the start of the month. This move is part of Bally Bet’s broader expansion strategy, which now sees the sportsbook operating across nine states. However, the path to growth has not been without its hurdles.

Despite its recent expansions, Bally Bet has struggled to carve out a substantial market presence. In New York, the sportsbook finds itself among the lower-performing operators, and it has faced similar challenges in several other states. This underperformance highlights the intense competition in the sports betting sector and the difficulties new entrants face in establishing themselves.

Despite these setbacks, Bally Bet’s parent company, Bally’s Corporation, remains optimistic about the future. In its Q1 2024 earnings report, Bally’s highlighted a substantial 70% increase in revenue for its North American segment, reaching $41.5 million. This growth was a significant achievement for the company and a testament to its potential in the sports betting arena.

CEO Robeson Reeves expressed a strategic vision during the earnings call, emphasizing the role of online sports betting as a crucial element for expanding Bally’s iGaming operations. The company’s focus is on leveraging its sports betting platform to enhance its presence in states where iGaming is also established, aiming to integrate and maximize the synergies between its various gaming ventures.

Bally Bet’s Maryland launch is just one facet of a broader narrative of change for Bally’s Corporation. The company is currently navigating a major transition with Standard General’s acquisition. After several rounds of negotiations, Standard General agreed to purchase Bally’s shares at $18.25 each, valuing the company at approximately $4.6 billion. This deal will merge Bally’s with Standard General’s The Queens Casino & Entertainment Inc., expanding its footprint in the regional casino market.

Soo Kim, who serves as both the chairman of Bally’s board and the managing partner of Standard General, has played a pivotal role in orchestrating this acquisition. Standard General has secured $500 million in financing to the buyout, reflecting its commitment to integrating Bally’s into its broader portfolio.

Stockholder Reactions and Historical Context

The acquisition process has seen its share of ups and downs. Bally’s shareholders previously rejected a 2022 offer from Standard General, which proposed $38 per share. The offer dropped significantly earlier this year to $15 per share, leading to criticism from shareholders who viewed it as undervalued. The final agreement at $18.25 per share represents a negotiated resolution that aims to satisfy both parties.

As Bally Bet steps into the Maryland market, it does so with a mix of hope and anticipation. The challenges faced in establishing a foothold in various states underscore the competitive nature of the sports betting industry. However, with its continued expansion and strategic focus, Bally Bet aims to turn these challenges into opportunities for growth.

Source:

”Bally Bet dives into Maryland sports betting market”, sbcamericas.com, July 29, 2024.