Way back in the year 2020, Bally acquired the naming rights to the former Fox Sports in a $125 million agreement with Sinclair Broadcast Group. Bally Regional Sports Network, as the new network was called, owned the rights to televise regular season games of NBA, NHL and MLB teams in regional markets across the U.S.
Diamond Sports Group oversaw the network as a part of the Sinclair empire. But earlier this month, Diamond filed for Chapter 11 bankruptcy, seeking a way to restructure its portfolio or get rid of some of the channels in its system, according to the Nevada Independent.
For Bally, the deal opened up an audience of potential sports bettors for the Bally Bet sportsbook in markets like L.A., Miami, Dallas and Detroit. But the sportsbook has not developed to the same degree as Bally casinos.
Bally Bet operates in Arizona, New York, Colorado, Indiana, Iowa and Virginia.
Incoming CEO Robeson Reeves blamed Bet.Works—acquired with the naming rights—which lacked the kind of platform to create a viable sports betting product.
“We are confident there are more economical and nimble solutions out there and Bally’s has spent the past five months analyzing them deeply,” Reeves said in his prepared remarks.
With the bankruptcy filed, Sinclair split Diamond off as a separate company as a debt for equity exchange with the creditors. With $8 billion in debt off the books, Diamond can afford to restructure.
Bally’s CFO Bobby Lavan said the company “has no liability related to Diamond’s debt and Diamond holds no equity or other ownership rights [in the casino operator.]”
The company still owns its branding and naming rights associated with the sports network.
“We continue to monitor the Diamond situation closely and look forward to working with the new management team,” Lavan said. “Bally’s will continue to promote its brand through multiple means.”
Bally’s has 15 casinos in 11 states. The company is busy constructing a $1.7 billion resort-casino complex in Chicago and a smaller casino near Penn State University.
Diamond will still pay rights fees to all teams on the Bally’s Sports network, except for the Arizona Diamondbacks. The company is seeking to renegotiate rights deals with the San Diego Padres, Cleveland Guardians and Cincinnati Reds.
Meanwhile, Bally’s has acquired the broadcast rights for all 120 minor league teams from MLB. In an attempt to bring more viewers to baseball, Bally’s will air the entire slate of minor league games for free on the Bally Live app, according to the New York Post.
The deal replaces MLB’s At Bat Live, with its $29.99 a year price tag. Last season, fans who wanted to catch a glimpse of rising stars like Yankees shortstop Anthony Volpe or Mets catcher Francisco Alvarez had to pay a premium to watch them.
MLB Commissioner Rob Manfred sees the deal—for a sum the league did not disclose—as a means to grow the reach of the minor league broadcasts.
Bally’s has 500,000 monthly retail customers and 750,000 monthly online players. Compare that to MLB’s At Bat app which had about 40,000 subscribers who paid the fee last year, a source said.
MLB says the arrangement offers “distribution opportunities across retail footprints, linear channels and digital products, all with added fan engagement opportunities via unmatched “gamification,” according to the MLB presentation.
For fans, the app offers free contests like “Baseball Bingo,” which will allow them to win Bally’s Rewards points.
Bally subscribers can redeem the Rewards points and maybe bet on the Bally Live app, including on MLB games. No wagering will be permitted on the minor league games.
The games will begin April 15. There will be no blackouts for home games, sources said.
“This is a way to get better market share in sports betting besides offering promotions,” said Bill Pascrell III, a gaming lobbyist and partner at the Princeton Public Affairs Group.
