U.S. gaming operator Bally’s Corporation has entered into an agreement to sell its interactive business in Asia and certain other international markets to company owned by members of its management in a move analysts suggest is likely designed to reduce exposure to grey markets. The Asia interactive business derives a significant portion of its revenue and profit from Japan.
In a filing, Bally’s said the transaction was non-cash in nature, with the owners of the buyer – described as the “carved-out business”, instead issuing a note. Ownership of certain intellectual property has been placed in trust and will be licensed to the buyer for a term of five years, with Bally’s to have no role in the management, operations or governance of the carved-out business.
