Bally’s Corporation recently announced that, following the receipt of all necessary regulatory requirements and shareholder approvals, it has completed its previously announced combination with Gamesys Group plc, a UK-based leading, global, online gaming operator. The transaction transforms Bally’s into a premier, global, data-driven omni-channel gaming company.
This strategic combination complements the growth and diversification that Bally’s has accomplished over the past 18 months. Gamesys’ proven technology platform will foster Bally’s continued buildout of its interactive offerings in North America, including real-money gaming options in Online Sports Betting and iGaming. Additionally, unifying Bally’s and Gamesys’ player databases and technologies provides Bally’s with one of the largest portfolios of omni-channel cross-sell opportunities, consisting of land-based gaming, Online Sports Betting, iCasino, poker, bingo, daily fantasy sports and free to play games. These offerings, coupled with Bally Interactive and Bally’s media partnership with Sinclair Broadcast Group, position the Company to capitalize on significant growth opportunities in the rapidly expanding U.S. online entertainment and sports betting markets.
Soo Kim, chairman of Bally’s Board of Directors, said, “Bally’s acquisition of Gamesys transforms our company into the premier omni-channel gaming company. We welcome the 1,800 members of the Gamesys team to the Bally’s family, and we welcome your strong technology capabilities and your proven international business acumen. We cannot wait to see what we are able to accomplish together in the US and beyond.”
With the closing of the transaction, former Gamesys CEO Lee Fenton will now serve as Bally’s CEO. Additionally, former Bally’s CEO George Papanier will assume the role of president, retail, for Bally’s land-based casino business, and former Gamesys COO Robeson Reeves will assume the role of president, interactive. Further, Fenton, Reeves, and Jim Ryan, former Gamesys non-executive director, have been appointed to serve on Bally’s Board of Directors.
Lee Fenton, the newly-appointed CEO of Bally’s, said, “I am honored to have the opportunity to lead Bally’s in the next phase of our evolution. Our business is transforming from being a regional casino operator into an industry leader in retail, sports, media and iGaming, which will see us bringing together a set of assets that gives us a formidable platform for growth as a digital-first leader in global gaming entertainment. With Gamesys now part of the Bally’s family, I look forward to delivering on the exciting opportunities ahead and continuing to create value for our shareholders, employees and customers in the years to come.”
The Nevada regulators were the last to approve the acquisition.
The recommendation came after gaming board members heard testimony from Bally’s Chief Financial Officer Steve Capp.
“Pre-transaction, Bally’s consisted mostly of retail brick-and-mortar operations, including most recently the MontBleu in Lake Tahoe (renamed Bally’s Lake Tahoe),” Capp said, according to CDC Gaming Reports. “The Gamesys acquisition is purposed in bringing that expertise into the family and enabling an execution on a strategy to provide to our customers a suite of gaming and entertainment products and fan-engagement opportunities ranging from brick-and-mortar to mobile sports betting and online casino products.”
Capp said the transaction will put Bally’s in the unique position of having its revenue and cash flow divided equally between land-based and online gaming operations.
“The strategy was originally designed to become bigger and seize the opportunity of a scale economy and capitalize on management expertise,” Capp said. “That evolved over time, and a couple of years ago, we realized the opportunity in this industry is bigger than just expanding brick-and-mortar and becoming broadly diversified in the U.S.
“We realized, as many peers have and actually been in front of us, that there are bigger opportunities here to become a digital- and data-driven company. It’s a little easier said than done, because it takes a lot of software and engineering expertise, and that expertise is not easily acquired.”
