Bally’s Corp. took ownership Wednesday of its now-namesake Atlantic City resort.
The Rhode Island-based company, known until recently as Twin River Worldwide Holdings, yesterday officially completed its $25 million purchase of Bally’s Atlantic City. New Jersey gaming regulators earlier this month approved the ownership change.
The company acquired the 1,251-room hotel-casino on Atlantic City’s Boardwalk from Caesars Entertainment and VICI Properties. Caesars collected 25% of the sale proceeds, and the real estate investment trust earned 75%.
In October, the then-Twin River paid Caesars $20 million for control of the Bally name, brand, and intellectual property. The corporate name change took effect on Nov. 9.
“We strongly believe in the potential of the Atlantic City market and are confident that we can restore Bally’s to its former glory,” Bally’s CEO George Papanier said in a statement. He said the company will implement “capital improvement plans to completely renovate the property with first-in-class amenities and offerings.”
Papanier highlighted the company’s expansion, saying the acquisition was part of “our ongoing portfolio diversification strategy.” The company has three other deals in place to acquire four resort-casinos in four states.
Bally is acquiring Tropicana Evansville in Indiana from Caesars, in partnership with real estate investment trust Gaming and Leisure Properties, for a combined $480 million. The company is also paying $120 million for Jumer’s Casino & Hotel in Rock Island, Illinois, and $155 million for Eldorado Shreveport in Louisiana and the operations of MontBleu Resort Casino in Lake Tahoe, Nevada.
When the new Bally finalizes its current acquisitions, the company will operate 14 casinos in 10 states. Much of the portfolio will be rebranded as Bally’s properties.
Macquarie Securities gaming analyst Jordan Bender told investors in a research note that the company had just two casinos less than five years ago. Now, after a total of $950 million in acquisitions after the final deals are complete, Bender said Bally’s is a “mid-sized value stock” and “one of the highest growers in the space.”
As for Bally’s Atlantic City, Papanier said the company has an agreement with FanDuel to host a sportsbook inside the property. The deal also includes three sports betting and five iGaming skins in New Jersey.
Bally’s has entered into partnerships with Esports Entertainment Group and Sporttrade Inc. for sports betting skins, and PointsBet and theScore for iGaming skins. Bally’s will also reserve skins for its own use.
The Bally’s Atlantic City casino includes 1,500 slot machines and 105 table games.
In addition to Bally’s Atlantic City, Bally’s Las Vegas – which is operated by Caesars – is currently the only other casino in the U.S. with the Bally’s name. As part of the agreement for control of the name, Caesars has a “perpetual license” to use the Bally’s brand in Las Vegas.
Shares of Bally’s, traded on the Nasdaq, closed at $30.61, up 20 cents or 0.66%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
