Is Bally's Corp Making Moves With Its U.S. Online Gambling Platforms?

In July of 2024, ownership at Bally's Corporation announced it was merging with Standard General, the company's majority stockholder. When the deal closes, Standard General is expected to buy 71% of Bally's outstanding shares at $18.25 per share. As part of the transaction, Bally's retail and online gambling operations will be combined with those of The Queen Casino & Entertainment Inc.

While this transaction moves forward, speculation has already begun regarding what Bally's is going to do with its Bally Bet and Bally Casino platforms across the world. They have already announced they will be selling off all digital assets in Asia. To astute industry insiders, that indicates Bally's may have something much bigger on the table for the future.

What Will Happen With Bally's Online Gambling Assets in the U.S.?

Bally's online gambling presence in America is relatively small. They are currently accepting online bets in a few states like New Jersey, Colorado, and Louisiana. Given the disappointing results that have come in from the company's digital platforms, there is speculation that the company might divest its digital presence.

While company officials have announced that they are selling off digital assets in Asia to focus more on European and North American operations, they are seemingly moving in a way that signals the company might be preparing to go private.

If the company is preparing to go private, it makes perfect sense that every aspect of the business will be getting scrutiny. With scrutiny often comes the removal of assets that are underperforming.

Regarding online casino gambling, it is expected to start expanding in the U.S. in 2025. This would be the ideal time for existing online gambling operators to start snapping up digital assets whenever possible. It's not a big piece, but Bally's small digital platform would fit well within the portfolio of smaller operators looking for a chance to grow.

Now could be the time to make a move. In recent interactions with shareholders, there has been consensus that Bally's digital assets have been a drag on the company's bottom line. This underperformance is likely tied to the company's inability to make headway in a U.S. online gambling market that remains extremely competitive.

If Bally's is considering divestiture of its digital assets, there might be a call to pull out of certain U.S. markets. That might be necessary in states like Arizona, Iowa, and Massachusetts where the company's sports betting platform operates independently from land-based operations. Suitors might prefer targeting areas where any transition would be easier due to an affiliation with retail gambling operations.

As of now, this is all speculation tied to the possibility of Bally's going private. If that is not the intended course of action, maintaining U.S. digital operations might be preferred to prompt more interest from a wider range of potential suitors.

For now, Bally's is seeking to close on the ongoing merger. When that has been completed interested parties should start getting a better idea of where the company is headed.