Good things are coming for the Bally’s brand as another rejuvenation of the gaming company is coming up. The company will attach its name to 21 regional sports networks owned by Sinclair Broadcast Group, which is the biggest deal between a casino operator and a TV network.
The week before, the company changed its name from Twin River Worldwide Holdings (TRWH) to Bally’s (NYSE:BALY). Just over a month ago, TRWH purchased the Bally’s brand for $20m from Caesars Entertainment (NASDAQ: CZR). Currently there are three casinos, in Atlantic City, New Jersay and Las Vegas that bear the Bally’s name. This number is likely to increase in the coming months. Caesars maintains control of Bally’s on the Las Vegas Strip.
Under the terms of the deal, Bally’s will pay Sinclair $85m over a period of 10 years to attach its name to RSNs. Sinclair also gets a 15 per cent interest in Bally’s, which is worth around $137m based on Bally’s market cap of around $913m. The TV network can secure 15 more per cent of Bally’s during the duration of the deal if objectives are met.
Bally now joins forces with the networks that have broadcasting rights for 12 NHL, 16 MLB and 17 NBA teams, opening the door to cross-selling casino content to sports fans. Sinclar acquired the 21 RSNs from Walt Disney for $10.6 billion last year, and is now putting the network to good use.
Another important point is that Bally’s paid $125m to acquire sports betting platform Bet.Works, which includes gaming operators in Colorado, Indiana, Iowa and New Jersey. This acquisition is set to close in Q1 2021, pending regulatory approval. When all purchases are finalized, Bally’s will operate 14 land-based casinos in 10 states, eight of which allow mobile sports betting.
Bally’s will become the premier, full-service, vertically integrated sports betting and iGaming company in USA with physical casinos and online gaming solutions united under a single brand.
Additionally, Bally’s has an agreement with FanDuel to host a sportsbook inside Bally’s Atlantic City casino, a propery that includes 1,500 slots, 105 tables and 1,251 hotel rooms. The sportsbook facility will be located on the first floor of the casino.
“This is the next step in our Company’s evolution,” said Soo Kim, Chairman of Bally’s Corporation’s Board of Directors. “By combining our expanding national footprint of casinos, the recently acquired Bally’s brand, and Bet.Works’ proprietary technology stack, we have evolved in just a few short years from a regional casino operator into the first U.S. gaming company committed to serving our customers with an omni-channel approach, combining the best of our physical properties with a superior online experience.”