[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Operator News

US – ‘Deep dive approach’ in North America paying off with Bally reporting record revenue

By - 24 February 2023

Bally’s Corporation executives have said they ‘remain committed to taking a deep dive approach in North America’ following fourth quarter and full year revenue of $576.7m and $2.3bn with casinos achieving their best ever results.

The company is predicting more to come with Atlantic City expected to be profitable this year and a temporary Chicago casino to open in the second half of 2023.

Robeson Reeves, current Bally’s President – Interactive, and incoming Chief Executive Officer, said: “We are pleased to have achieved record results in both our Casinos & Resorts and International Interactive segments. Our core businesses continue to generate fantastic cash flows. UK revenue grew 12 per cent organically in the fourth quarter as regulations continue to play through, while in December, Asia saw positive year-over-year organic growth, proving that our initiatives to maintain a competitive advantage in that market are effective. We remain committed to taking a deep dive approach in North America to ensure that investments we make in sports have a near-term path to profitability. In iCasino states, we’ve increased our market share in both New Jersey and Ontario as we integrate this business in a scalable way.”

George Papanier, current Bally’s President – Casinos & Resorts, and incoming Bally’s President, said: “Casinos & Resorts saw continued momentum across the portfolio during the fourth quarter. We also broke ground on our temporary facility in Chicago, which we expect will contribute to the business in the second half of 2023. Though Atlantic City generated a loss during a slower fourth quarter, it continues to progress, and we expect the property to be profitable in 2023. Significant capital expenditures toward property improvements will decrease in 2023 as we focus on generating cash flows to invest in long-term growth opportunities for the entire Bally’s portfolio. Finally, business momentum continues to be strong into 2023, with no slowdown in the consumer, as we continue to closely monitor market macro dynamics.”  

Bobby Lavan, Bally’s Chief Financial Officer, provided commentary on recent news reports regarding Diamond Broadcast Group. “In 2020, Bally’s acquired naming rights over Diamond’s regional sports networks. Sinclair Broadcast Group separately agreed to promote the Bally’s brand over Sinclair networks. However, the Bally’s brand and naming rights are owned by Bally’s alone. Bally’s has no liability related to Diamond’s debt and Diamond holds no equity or other ownership rights in Bally’s. We continue to monitor the Diamond situation closely and look forward to working with the new management team. Bally’s will continue to promote its brand through multiple means, including our national portfolio of Bally’s branded casinos, various media partnerships like that with Sinclair and the Tennis Channel and our global digital portfolio.”

On January 3, 2023, Bally’s completed its previously announced sale leaseback transaction with GLPI for the land and real estate assets of Bally’s Tiverton and Hard Rock Biloxi for total net proceeds of $609.1m, including a $200m advance deposit received during the third quarter of 2022. The transaction is a tax-free capital contribution and a substantial portion of the proceeds will be applied to reduce the Company’s debt.

Bally’s is reaffirming the guidance it provided on February 13, 2023 for the year ending December 31, 2023 and estimates revenue in the range of $2.5bn to $2.6bn and Adjusted EBITDAR in the range of $660m to $700m, which includes approximately $124m of rent expense (cash rent of $119m) and a range of $40m to $50m of Adjusted EBITDA losses in North America Interactive.

Share via
Copy link