Bally’s Corp. continues to add to its gaming interests.
The Rhode Island-based gaming operator announced Tuesday that it has reached definitive terms to combine with Gamesys, a global online gaming operator based in the United Kingdom. Last month, when the transaction was first announced, Bally’s said the acquisition was worth $2.8 billion.
Bally’s chairman Soo Kim said in a statement that the combination marks a “transformational step in our journey to become a leading integrated, omni-channel gaming company with a B2B2C business.
Kim also said that Gamesys technology platform., combined with Bally’s access to the U.S. market, will allow the combined group “to capitalize on the significant growth opportunities in the US sports betting and online markets.
According to a filing with the U.S. Securities and Exchange Commission, the transaction is conditioned on approval by Gamesys and Bally’s shareholders and regulatory approvals. The transaction is subject to termination if not completed within 12 months, or a later date if Bally’s and Gamesys agree.
In connection with the Gamesys deal, Gaming and Leisure Properties, a real estate investment trust, and Bally’s have committed to a $500 million structure in which the REIT has the potential to acquire additional hotel-casino in sale-leaseback transactions, should Bally’s utilize the company as a funding source for its proposed acquisition of the online gaming operator.
GLPI said in a statement, the commitment provides Bally’s an alternative financing commitment which at GLPI’s sole discretion may be funded in the form of equity, additional prepaid sale-leaseback transactions, or secured loans.
On a conference call Tuesday morning, a Bally’s executive called the financing a “backstop.”
Bally’s has been actively acquiring properties and increasing its gaming interests over the last year. The company closed on its purchase of MontBleu Resort Casino in Lake Tahoe last week and announced the acquisition of the Tropicana Las Vegas on the Strip Tuesday morning. Through pending deals, Bally’s expects to have 16 casinos in 11 states by next year.
Within the last year, Bally’s also acquired Bet.Works, a sports betting platform provider to operators in New Jersey, Iowa, Indiana, and Colorado; Monkey Knife Fight, a gaming platform daily fantasy sports operator and SportCaller, a free-to-play sports game provider. The company struck a media partnership with the Sinclair Broadcast Group in November 2020.
This year Bally’s announced partnerships with the NBA and MLB and opened the FanDuel Sportsbook at Bally’s AC in Atlantic City.
Gamesys offers bingo and casino games through brands including Jackpotjoy and Virgin Games.
Bally’s arranged interim financing for the Gamesys transaction from Deutsche Bank Aktiengesellschaft, London Branch, Goldman Sachs Bank USA, and Barclays Bank PLC, and intends to refinance the bridge facility and Gamesys’ debt through one or more capital market transactions.
The respective boards of directors believe the combination will create long-term value for both companies. A joint release stated that Gamesys will benefit from Bally’s growing presence in land-based and online platforms in the U.S., and Bally’s will be able to leverage Gamesys’ technology platform and expertise.
CDC Gaming Executive Editor Howard Stutz contributed.
