Bally’s Corp. has had a busy 2021 so far. In the first quarter of this year, Bally’s Corp. closed on the acquisition of a daily fantasy sports operator and of a social game provider and purchased U.K. online gaming company Gamesys for $2.8 billion.
In addition, deals to purchase Tropicana Las Vegas from Gaming and Leisure also features a number of sale-leaseback agreements revolving around Bally’s properties in Colorado and Illinois.
In the past 18 months, Bally’s has expanded to 12 properties within eight states. The Rhode Island company also created a sports betting and iGaming presence, according to CDC Gaming Reports.
“Management indicated it could launch its sports betting app in its first state (Colorado) by the end of the month and expects to be live in three additional states before year end,” Union Gaming Group analyst John DeCree told investors following the company’s quarterly earnings release May 10.
Bally’s brand awareness has grown since it struck a deal with Sinclair Broadcast Group to rebrand 19 regional sports networks under the Bally’s name as of April 1.
The company saw first quarter revenue jump 76.2 percent as a result of restrictions lifted in March and the addition of figures from casinos in Kansas City, Vicksburg, Atlantic City and Shreveport in the latter part of 2020. Still, net loss for the quarter grew to $10.7 million, compared to $8.9 million a year earlier.
“As we approach historical operating levels, we are encouraged by the performance at many of our properties this quarter,” Bally’s CEO George Papanier said in a statement. “When coupled with ongoing capital initiatives, (the deals) offer tremendous growth opportunities and the potential to deliver strong results over the coming quarters.”
The Tropicana acquisition, which gives Bally’s a casino resort on the Strip, could close by the end of the year. And back in April, the company completed its purchase of MontBleu Resort in Lake Tahoe, Nevada.
“We suspect management may not be done on its ongoing buying spree,” Stifel gaming analyst Jeffrey Stantial told investors.
The Gamesys deal should close in the fourth quarter, pending regulatory approvals, according to iGB North America. Both companies produced positive first quarter figures, with revenue for Gamesys increasing 27 percent and Bally’s posting $185 million.
