Bally’s revenues fall due to offloading of Asian online business but casino business grows
Despite strong performance in its land-based casinos, Bally’s Entertainment’s first quarter revenues fell by nearly five per cent due to the divestiture of the Asia interactive business in 2024, which saw its international interactive results plummet by 18.3 per cent.
Bally’s generated revenue of $589.2m, a 4.7 per cent decrease year over year with a 2.6 per cent increase in casino-and-resort revenues, to $351.2m, boosted by the inclusion of the four regional casinos as part of The Queen Casino & Entertainment purchase.
Internationally, and away from the effects of the Asian interactive revenue, revenue was up 7.7 per cent, marked by a 4.9 per cent greater online revenue in the United Kingdom. There was also a 12.5 per cent boost in North American digital taking revenues to $44.5m.
Robeson Reeves, Bally’s Chief Executive Officer, commented: “Early in the 2025 first quarter we completed a series of transactions with The Queen Casino & Entertainment and Standard General which has further expanded our scale and positioned the Company for compelling long-term growth as we added four regional gaming properties with attractive growth opportunities. Following the completion of these transactions, Bally’s expanded its domestic gaming portfolio and is deploying a range of best operating practices from both our legacy properties and Queen’s operations. These initiatives are focused on driving operating efficiencies, profitable top line growth and improving operating margins while we simultaneously focus on growing our International Interactive business and optimising the results of our North America Interactive segment.
“There continued to be stability in the domestic regional gaming environment in the first quarter, but inclement weather and increased supply in a few of our regional markets offset the growth generated by the addition of the Queen assets. The team has overcome some traffic impacts in Rhode Island through marketing interventions, the Chicago temporary facility continues to fine tune its operations and build its data base in anticipation of the opening of the permanent facility, and we expect improvements in Atlantic City based on recent leadership changes. Despite the competitive landscape, during the first quarter, Bally’s legacy properties outpaced market growth in seven of twelve jurisdictions.
“C&R segment Adjusted EBITDAR grew 6.3 per cent year over year to $95.1m reflecting the addition of the Queen properties in the post-merger period from February 8, 2025 to March 31, 2025. Despite the macro-economic headlines as a result of trade policies, to-date in the second quarter, we continue to see relative stability across our C&R operations.
“International Interactive revenue demonstrated continued strength in our U.K. operations. U.K. revenue rose 4.9 per cent driven by continued strong player retention and monetization. We grew revenues in Spain following the easing of advertising restrictions in that market.
“Revenue for our North America Interactive segment rose 12.5 per cent year over year reflecting the addition of the Queen interactive business in the post-merger period and continued ramp of our Rhode Island interactive business, which benefited in part from the capture of spend by players impacted by the noted bridge construction issues affecting our brick-and-mortar operations in the state, and the benefit of contributions from Queen’s interactive operations. We are currently live with iGaming in New Jersey, Pennsylvania, Rhode Island and Ontario. The BallyBet sports offering is live in 11 states as we continue to focus on productive marketing and optimizing our cost structure.
“In April 2025, Bally’s announced an AUD $300m strategic capital investment in Star Entertainment Group, a leading Australian entertainment and gaming company, operating casino and resort properties in Sydney, Brisbane and the Gold Coast. Subsequently, Investment Holdings, the Star’s largest shareholder entered into a commitment to provide AUD $100m of the investment, reducing Bally’s total commitment to AUD $200m. Bally’s AUD $200m investment consists of a multi-tranche convertible note and subordinated debt instrument that, upon conversion, could result in Bally’s owning approximately 38 per cent of Star. Bally’s funded AUD $67m of the investment in April, with funding of the remainder subject to various approvals. The opportunity to take a significant equity stake in Star and influence its future is consistent with Bally’s historical operating strategy and we are confident and optimistic that, similar to past situations, we can deploy our disciplined operating and financial practices to strengthen Star and create new value for Bally’s shareholders.”
