Bally’s Expands Bally Bet to Four More States and Merges with Standard General

Bally’s Corporation is on a notable expansion trajectory, with CEO Robeson Reeves outlining plans for Bally Bet to launch in four additional U.S. states by the year’s end. This announcement came on the heels of Bally Bet’s recent debut in Maryland, its ninth operational state, and follows closely after its entry into Massachusetts just a month earlier.

A Surge in Financial Performance

Bally’s Interactive has reported a substantial boost in revenue for Q2 2024, reaching $49.2 million, a striking increase from the $25.3 million reported in the same quarter last year. This 94% rise in revenue is largely attributed to robust performance in New Jersey and Pennsylvania’s iGaming sectors. While Bally Bet holds a modest 1% share of the U.S. sports betting market, the Bally Casino brand has proven to be more influential.

Reeves also highlighted the successful migration of Bally Bet to the Kambi and White Hat platforms. The transition has been well-received by customers, offering a more differentiated service in a competitive landscape. Although the shift in technology is ongoing, with both White Hat and Bally’s proprietary platforms still in use, full implementation across Ontario, Pennsylvania, and New Jersey is expected by the end of Q4.

Bally’s plans to broaden its sports betting footprint are clearly defined. Reeves has indicated that Bally Bet will expand into four more states in the latter half of the year. The initial focus will be on “simpler” markets, with Illinois and Tennessee expected to be among the first. Additionally, Bally Bet will be introduced in New Jersey and Ontario, Canada’s sole regulated commercial market. These expansions are intended to drive revenue growth and enhance customer acquisition efforts.

At present, Bally Bet is operational in states including Arizona, Colorado, Indiana, Massachusetts, Maryland, New York, Iowa, Ohio, and Virginia. This strategic expansion aims to strengthen Bally Bet’s market presence and leverage opportunities for increased revenue.

Strategic Merger with Standard General

The company’s financial results coincide with the recent acceptance of an acquisition offer from major shareholder Standard General. The proposed merger, valued at approximately $4.6 billion, will integrate Bally’s with The Queen Casino & Entertainment (QC&E), a regional operator managing casinos in Illinois, Iowa, and Louisiana.

Reeves expressed optimism about the merger’s potential to enhance Bally’s operational platform and diversify its market reach. Combining QC&E’s development pipeline with Bally’s growth initiatives is expected to boost revenue and operational efficiency. However, Bally’s anticipates adjusted EBITDA losses exceeding $30 million for the current fiscal year.

New Developments in Maryland

Bally Bet’s entry into the Maryland market was marked by a successful launch, following approval from the Maryland Lottery and Gaming Control Commission. The commission verified that Bally Bet’s mobile platform met all regulatory requirements, leading to the issuance of a mobile-only sports wagering license.

Maryland’s sports betting landscape now features 11 mobile options, including Bally Bet. The market recently saw exits from SuperBook Sports and Betfred, both of which had minimal market share. SuperBook is consolidating operations to focus on its Nevada facilities, while Betfred closed its Maryland operations in late July.

Bally Bet faces significant competition in Maryland, where FanDuel and DraftKings dominate the market. In the fiscal year 2024, Maryland’s total sports wagering revenue exceeded $402 million, with online sportsbooks contributing over $387 million. FanDuel and DraftKings together hold nearly 88% of the mobile sports betting market. Bally Bet and other smaller sportsbooks must navigate this competitive environment to capture market share.

Despite these challenges, Bally Bet’s expansion strategy and technological upgrades position it to make a significant impact. The company’s focus on entering new markets and enhancing its service offerings reflects a commitment to growth and adaptability in a rapidly evolving industry.

Source:

”Bally Bet sportsbook expects to spread wings in 4 more states in 2024”, sbcamericas.com, August 01, 2024.