Operator News
US – Newly formed Bally’s makes its sports betting move with Bet.Works and Sinclair’s deals
By Phil - 19 November 2020
Bally’s Corporation, previously Twin River Holdings, is buying Bet.Works, a US-based, sports betting platform provider to operators in New Jersey, Iowa, Indiana and Colorado, for $125m, subject to adjustment.
Bally’s is aiming to ‘become the premier, full-service, vertically integrated sports betting and iGaming company in the US with physical casinos and online gaming solutions united under a single, preeminent brand, thus enabling it to launch its B2B2C business model.’
Half of the Bet.Works purchase price will be paid in Bally’s common stock, which Bet.Works shareholders have agreed to hold for at least a year.
The Bet.Works acquisition represents the latest step in Bally’s long-term growth, development and unification strategy. Over the past two years, Bally’s has engaged in strategic and opportunistic expansion of its gaming and entertainment properties, which will include 14 casinos across 10 states once all pending transactions are completed. In addition, Bally’s recently acquired its iconic brand, which is synonymous with U.S. gaming and entertainment, and commensurate with the premier properties and amenities that define the Company’s portfolio.
The Bet.Works acquisition, which complements these initiatives, will provide Bally’s with a suite of advanced omni-channel products, platforms, software and content solutions that will enable it to deliver unrivaled sports betting and iGaming offerings to customers on a national scale. According to investment research by major Wall Street analysts and management estimates, the U.S. sports betting and iGaming market is expected to grow to $12bn by 2025 and reach $50 billion at maturity. Bally’s estimates that the US sports betting and iGaming market will reach $2.6bn this year.
“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 US gaming company committed to serving our customers with an omni-channel approach, combining the best of our physical properties with a superior online experience.”
Following the acquisition, Bally’s will form two distinct operating divisions: “Bally’s Casinos,” which will be comprised of Bally’s physical gaming and entertainment properties, and “Bally’s Interactive,” which will include new and existing contracts for sports betting and iGaming, including all of Bet.Works’ sports betting operations.
George Papanier, President and Chief Executive Officer of Bally’s Corporation, commented, “We are very excited to welcome Bet.Works to the Bally’s family. Owning Bet.Works’ superior technology platform will not only give Bally’s a long-term margin advantage online, but, more importantly, will also allow us to evolve our interactive product suite to go where sports betting and iGaming customers are headed quickly. David Wang and his team at Bet.Works have already demonstrated impressive growth and the ability to execute while creating a differentiated platform. We are very pleased to bring this technology to our more than 14 million active customers who will experience Bally’s Casinos and Bally’s Interactive as a unified brand with a single player card and rewards system.”
David Wang, Founder and CEO of Bet.Works, will serve as the CEO of Bally’s Interactive upon closing the transaction. Bally’s Interactive will integrate Bet.Works’ experienced team of over 130 employees across three offices, including approximately 90 engineers, into its interactive operations. Bally’s Interactive also plans to open a technology development center in Rhode Island by the end of 2021, initially with 25 employees.
Mr. Wang stated: “We are pleased to be joining the Bally’s family, which has demonstrated a remarkable track record of growth and diversification with a proven management team. We remain committed to creating the world’s best sports entertainment products, as well as delivering innovative and exciting solutions for sports betting and iGaming consumers across Bally’s national footprint. Bet.Works will continue to offer our best in class solutions to our existing B2B clients and our future partners in the U.S. market as we expand our reach into newly regulated states. Our turnkey solutions, which include Marketing, Operations, Customer Service, Risk Management and Compliance, combined with our dedicated launch teams, will ensure we maintain a leading position in the B2B sector while powering Bally’s Interactive. Bally’s is the perfect home for Bet.Works as it will allow us to continue to grow and innovate.”
Bally’s expects to close the transaction during the first quarter of 2021, pending regulatory approval and other customary closing conditions.
Alongside this deal, Bally has entered into agreements for a long-term strategic partnership that combines Bally’s vertically integrated, proprietary sports betting technology and expansive market access footprint with Sinclair’s premier portfolio of local broadcast stations and live regional sports networks (“RSNs”), STIRR, its popular Tennis Channel, and digital and over-the-air television network Stadium. Bally’s and Sinclair will partner to create unrivaled sports gamification content on a national scale, positioning Bally’s as the premier omni-channel gaming company with physical casinos and online sports betting and iGaming solutions united under a single brand. The transaction is expected to position Bally’s to capture a significant share of the fast-growing U.S. sports betting and iGaming market.
Bally’s will integrate content into the 190 television stations that Sinclair owns, operates or provides services to across 88 markets and its sports networks. This will allow Sinclair and Bally’s to jointly market, design and integrate products on a state-by-state basis, and deliver one-of-a-kind online gaming experiences to local audiences. The 21 FOX RSN brands will be rebranded using the Bally name whilst the Sinclair partnership, along with Bally’s acquisition of Bet.Works’ iGaming platform, growing market access and land-based footprint that will soon cover 10 states with additional states expected to come, position Bally’s to capture a significant share of the estimated future $50 billion U.S. sports betting and iGaming market opportunity (according to Wall Street analyst research and Bally’s management estimates).
“This arrangement represents an opportunity to revolutionize the U.S. sports betting, gaming and media industries,” said Soo Kim, Chairman of Bally’s Corporation’s Board of Directors. “Sinclair, with its broad holdings of stations, channels and RSNs, provides immediate, national brand recognition that will support the development of Bally’s player database for both our traditional casinos as well as our future online offerings, and ultimately deliver significant shareholder value. We look forward to integrating our first-in-class, omni-channel sports betting and iGaming offerings with Sinclair’s expansive broadcast network to create a more engaging and tailored experience for sports fans, positioning Bally’s to become one of the top US sports betting and iGaming operators.”
Chris Ripley, President and CEO of Sinclair, added: “Since acquiring Tennis Channel a few years ago and the RSNs last year, we have been working on developing an innovative experience that changes the way people think about and view live sports across all our platforms. Bally’s, with its strong brand name, premier sportsbook technology platform and expansive market access, is the perfect partner to help us change the paradigm of sports viewing across all our assets. By integrating gamification elements that allow audiences a more personalized and interactive game experience, consumers of live sports in the future can look forward to a more dynamic and engaging sports viewing experience. With the U.S. sports betting and iGaming market expected to ultimately reach ~$50 billion at maturity, this partnership perfectly positions our sports portfolio to fully capitalize on changing audience behavior.”
The company has also just completed on its previously announced acquisition of Bally’s Atlantic City Hotel & Casino from Caesars Entertainment for $25m
“We strongly believe in the potential of the Atlantic City market and are confident that we can restore Bally’s to its former glory,” said Mr. Papanier said. “We are pleased to close on this transaction, which represents the latest addition in our ongoing portfolio diversification strategy, and look forward to implementing our capital improvement plans to completely renovate the property with first-in-class amenities and offerings. We have a proven track record of implementing strategic initiatives at acquired properties in order to drive growth and revenue improvements, and plan to bring the iconic property to a level not seen in years.”
As part of the transaction, Bally’s also receives three sports betting and five iGaming skins in New Jersey. As previously announced, the Company entered into strategic partnerships with Esports Entertainment Group and Sporttrade Inc. for sports betting skins, and PointsBet and theScore for iGaming skins, all of which provide unique benefits in the cutting-edge New Jersey sports betting and iGaming market, and allow the Company to reserve skins for its own use. In addition, the Company has an agreement with FanDuel to host a sportsbook inside Bally’s Atlantic City, which will debut shortly. The Company expects these partnerships to be accretive to earnings.
Bally’s Atlantic City, located in Atlantic City, New Jersey, is situated prominently in the center of the Atlantic City boardwalk. This iconic property includes 1,500 slots, 105 tables and 1,251 hotel rooms.
