On an earnings call held on Monday, management at Bally’s revealed the business is waiting on its acquisition of Gamesys before rolling out its Bally Bet product in additional states.
At the time of writing, Bally Bets is currently only available in Colorado and Iowa. However, the product is not being supported by a major advertising or promotional campaign.
On the earnings call, senior VP of strategy and interactive Adi Dhandhania revealed that Bally’s has reallocated resources from focusing on more state launches to preparing to integrate the technology gained from the Gamesys acquisition.
Once the integration is complete, a second version of the Bally Bet app will be rolled out and launched in other states.
Bally’s acquisition of Gamesys
In March, Bally’s made a roughly $3bn offer to acquire the UK-based Gamesys Group.
Under the proposed terms, Bally’s would acquire all outstanding shares of Gamesys at a price of 1,850p ($25.37) a share.
In April, the boards of both businesses agreed on the terms of a deal that would see Bally’s acquire Gamesys’ issued and outstanding share capital through its wholly-owned subsidiary Premier Entertainment.
At the time, Bally’s said it believes the deal will allow it to significantly increase its market share in the US betting and online gambling market.
Back in July, both Bally’s and Gamesys’ shareholders approved the purchase.
During a court meeting and general meeting, Gamesys shareholders approved the purchase. Of those who voted in the court meeting, 92.4% were in favour and 99.1% of the general meeting supported a special resolution relating to the merger.
Meanwhile, Bally’s shareholders also voted to approve the deal, allowing the merger agreement to proceed to the next stage.
The predicted timetable for the completion of the merger is set for later this year, with both organisations expecting it to close in Q4 2021.
Once the deal is finalised, Lee Fenton, Gamesys’ Chief Executive Officer will become group chief executive, while Gamesys chief operating officer Robeson Reeves and non-executive director Jim Ryan will join the Bally’s board. Bally’s current CEO George Papanier will oversee the operator’s land-based operations and remain on the board.
Bally’s Q2 performance
Bally’s also published an update for its second-quarter performance for the year of 2021.
According to the financial results for Q2, revenue rose to $267.7m, 826.3% up from $28.9m for the same period last year.
Net income for the period was $68.9m, an increase of $92.5m from a net loss of $23.6m in the second quarter of 2020. Meanwhile adjusted EBITDA hit $83.8m, up from $94.5m from -$10.7m last year.
The business attributed the results to the reduction in coronavirus restrictions across the country, as all properties are now operating at full capacity when compared to 2020.
George Papanier, President and Chief Executive Officer for Bally’s said: “We had record revenue and earnings performance in the quarter and remain confident that we will continue to benefit from rebounding demand across our land-based portfolio. Improved consumer confidence, minimal capacity restrictions, and our disciplined operating strategy all contributed to extremely strong numbers across the board in the second quarter.”
Bally’s makes a bid for New York sports betting
In addition to Bally’s acquisitions, the operator is hoping to expand its footprint into the state of New York.
Bally Bet has joined BetMGM, DraftKings, and FanDuel in a bid that will see the four operators apply for New York’s mobile betting licences.
Another notable bid came from Kambi who teamed up with Caesars sportsbook, Resorts World, PointsBet, Rush Street Interactive, and WynnBet. Kambi also made a second bid that would see the provider team up with former FanDuel CEO Matt King’s new company Fanatics, and Penn National Gaming’s Barstool Sportsbook.
The online betting giant Bet365, theScore, and Fox Bet all submitted individual sports betting licence bids.