Top executives of Bally’s Corp. took no questions and gave little color concerning the company’s recently announced merger with The Queen Casino & Entertainment during its second-quarter earnings call on Wednesday. The same held true for the newly approved buyout offer from Chairman Soo Kim’s Standard General hedge fund.
Kim wasn’t present for the call, during which it was disclosed that the budget for the in-progress Bally’s Chicago casino-resort project had increased slightly, to $1.3 billion. The company also shaved $50 million from its capex maintenance budget to $115 million.
The budget cut was achieved by canceling a number of minor refits. CFO Marcus Glover explained, “Most of it were some small expansion projects that we reevaluated.”
“We’re now fully ready to plant our flag in the heart of the city,” CEO Robeson Reaves said of the Chicago megaresort. Earlier in the month, Bally’s received substantial construction funding by dint of selling Bally’s Chicago to Gaming & Leisure Properties.
“There is now no doubt that Bally’s Chicago is coming to the banks of the Chicago River,” added company President George Papanier. He said Bally’s is seeking approval of recent design changes from the city, but remains on pace for an autumn 2026 opening.
The temporary Bally’s Casino in Chicago’s Medinah Temple drove a three percent increase in casino revenues, averaging $13 million per month. It was described as being second in Illinois in table game revenue and fourth in slot winnings.
Admissions to the temporary have now pushed past the one-million mark and the Chicago database has more than 100,000 names. More bus routes have been added, Papanier said, and a VIP lounge will open this week.
Although he wouldn’t discuss the Queen merger with Wall Street analysts, Reaves said beforehand that it “will expand our platform and our database” and that the deal “provides a clear path to increase revenue.”
The now-closed Tropicana Las Vegas was said to be on pace for an October implosion, followed by a handover of nine acres to the Oakland Athletics. Added Papanier, “We continue to evaluate development options for the remainder and remain optimistic.”
“We remain extremely excited” by Bally’s New York City proposal, offered Reaves, who said it would be “another must-see destination in the Big Apple.” Papanier opined that the former Trump Links land is “superior to the sites offered by our competitors.”
On the other hand, Bally’s Atlantic City experienced “a somewhat difficult quarter,” according to the company Reaves, mostly due to defections from the marketing department. Overall, “We’re watching the lower end closely, as we’re seeing some evidence of spending fatigue.”
Another negatively impacted market was Rhode Island, where bridge repairs have been sapping winnings to the tune of $500,000 a month for the past four months. Bally’s Lincoln and Tiverton casinos were also reported to be feeling the impact of heightened promotional activity by casinos in Massachusetts. Glover said Rhode Island play was “strained a bit” and the bridge situation “creates some inconvenience.”
Boosted by a Rhode Island online play, interactive revenues increased 95 percent to reach $49.2 million in North America. Bally’s execs continued to anticipate a $30 million negative return on investment for the year, however.
Overseas, Bally’s was described by Reaves as taking market share in the United Kingdom and preparing for a soft British launch of online sports betting (OSB). He added, “We’ve been spending more money on brand advertising. Typically, that’s less effective from a spend perspective.”
Elsewhere, in both Asia and Europe, Bally’s was “reducing uneconomic marketing,” said the CEO, who added, “we’re seeing some growing traction” on the Continent, particularly in Spain.
Domestically, Bally’s launched OSB in Maryland and “the standout is Pennsylvania, where we continue to gain share,” Reaves said. “The change from our technology stacks [to Kambi] is still incomplete,” he cautioned, including in Ontario and New Jersey.
As for upcoming projects, Bally’s Nittany Mall casino in Pennsylvania was recently cleared by the courts to go ahead. However, stock analysts were told not expect any construction before 2025, as Bally’s is still obtaining regulatory approvals.
Bally’s ended the quarter with $155 million cash on hand and $3.6 billion in debt.
