All significant metrics for Bally’s Entertainment’s first quarter were up, except one. That one was sufficient to swing the quarter from revenue positive to revenue negative versus the same quarter last year.
Bally’s reported revenue of $589.2 million, a 4.7 percent decrease year over year. Its International Interactive division plummeted 18.3 percent to $191.7 million, on account of the divestiture of Bally’s Asian operations in 2024.
Non-Asian interactive revenue, however, was up 7.7 percent. This included 4.9 percent greater online revenue in the United Kingdom and a 12.5 percent increase in North American digital proceeds to $44.5 million.
The company also posted a 2.6 percent increase in casino-and-resort revenues, to $351.2 million. Those numbers were swelled after February 7 by the four regional casinos of The Queen Casino & Entertainment, Bally’s acquisition of which closed during the first quarter.
Cash flow was positive for the Casinos & Resorts and International Interactive divisions. However, the North American Interactive division showed a negative return on investment.
“There continued to be stability in the domestic regional gaming environment in the first quarter, but inclement weather and increased supply in a few of our regional markets offset the growth generated by the addition of the Queen assets,” reported CEO Robeson Reaves in a press release. For the second consecutive quarter, the company did not hold a call with investors and analysts.
“The team has overcome some traffic impacts in Rhode Island through marketing interventions, the Chicago temporary facility continues to fine tune its operations and build its database in anticipation of the opening of the permanent facility, and we expect improvements in Atlantic City based on recent leadership changes,” Reaves continued. He added that seven of 12 Bally’s casinos outperformed their surrounding markets during the quarter.
Following the Asian spin-off, the CEO said, “Our International Interactive operations are primarily focused on regulated European markets that continue to demonstrate solid growth characteristics and deliver attractive margins.” He singled out Spain, where looser advertising rules have enabled Bally’s to grow online revenue.
The company presently provides igaming in three U.S. states (including a monopoly in Rhode Island) and Ontario. Its sports betting product is live in 11 states. Reaves reported that Rhode Island players, impeded by road construction from getting to Bally’s casinos in that state, were turning to the company’s igaming product instead.
The CEO also disclosed that Bally’s commitment to Star Entertainment, in Australia, had been reduced to AU$200 million. That translated to a 38 percent share of Star.
Said Reaves, “The opportunity to take a significant equity stake in Star and influence its future is consistent with Bally’s historical operating strategy and we are confident that, similar to past situations, we can deploy our disciplined operating and financial practices to strengthen Star and create new value for Bally’s shareholders.”
Construction of the $1.7 billion Bally’s Chicago was described as progressing. Aside from reiterating its lease for the Tropicana Las Vegas, Bally’s didn’t address that project, nor the status of its megaresort proposal for Bally Links in New York City.
Bally’s ended the quarter with $209,727 in cash on hand and debt of $3.4 billion. No profit or loss number was disclosed.
