PROVIDENCE, R.I., Nov. 18, 2020 /PRNewswire/ -- Bally's Corporation
(NYSE: BALY) today announced that it has entered into a definitive
agreement to acquire Bet.Works, a U.S. based, sports betting
platform provider to operators in New
Jersey, Iowa, Indiana and Colorado, for $125
million, subject to adjustment. Upon acquiring Bet.Works'
proprietary technology stack and turnkey solutions, which include
marketing, operations, customer service, risk management and
compliance, Bally's will become the premier, full-service,
vertically integrated sports betting and iGaming company in the
U.S. with physical casinos and online gaming solutions united under
a single, preeminent brand, thus enabling it to launch its B2B2C
business model.
Half of the Bet.Works purchase price will be paid in Bally's common
stock, which Bet.Works shareholders have agreed to hold for at
least a year.
The Bet.Works acquisition represents the latest step in Bally's
long-term growth, development and unification strategy. Over the
past two years, Bally's has engaged in strategic and opportunistic
expansion of its gaming and entertainment properties, which will
include 14 casinos across 10 states once all pending transactions
are completed. In addition, Bally's recently acquired its iconic
brand, which is synonymous with U.S. gaming and entertainment, and
commensurate with the premier properties and amenities that define
the Company's portfolio.
The Bet.Works acquisition, which complements these initiatives,
will provide Bally's with a suite of advanced omni-channel
products, platforms, software and content solutions that will
enable it to deliver unrivaled sports betting and iGaming offerings
to customers on a national scale. According to investment research
by major Wall Street analysts and management estimates, the U.S.
sports betting and iGaming market is expected to grow to
$12 billion by 2025 and reach
$50 billion at maturity. Bally's
estimates that the U.S. sports betting and iGaming market will
reach $2.6 billion this year.
"This is the next step in our Company's evolution," said
Soo Kim, Chairman of Bally's
Corporation's Board of Directors. "By combining our expanding
national footprint of casinos, the recently acquired Bally's brand,
and Bet.Works' proprietary technology stack, we have evolved in
just a few short years from a regional casino operator into the
first U.S. gaming company committed to serving our customers with
an omni-channel approach, combining the best of our physical
properties with a superior online experience."
Following the acquisition, Bally's will form two distinct operating
divisions: "Bally's Casinos," which will be comprised of Bally's
physical gaming and entertainment properties, and "Bally's
Interactive," which will include new and existing contracts for
sports betting and iGaming, including all of Bet.Works' sports
betting operations.
George Papanier, President and Chief
Executive Officer of Bally's Corporation, commented, "We are very
excited to welcome Bet.Works to the Bally's family. Owning
Bet.Works' superior technology platform will not only give Bally's
a long-term margin advantage online, but, more importantly, will
also allow us to evolve our interactive product suite to go where
sports betting and iGaming customers are headed quickly.
David Wang and his team at Bet.Works
have already demonstrated impressive growth and the ability to
execute while creating a differentiated platform. We are very
pleased to bring this technology to our more than 14 million active
customers who will experience Bally's Casinos and Bally's
Interactive as a unified brand with a single player card and
rewards system."
David Wang, Founder and CEO of
Bet.Works, will serve as the CEO of Bally's Interactive upon
closing the transaction. Bally's Interactive will integrate
Bet.Works' experienced team of over 130 employees across three
offices, including approximately 90 engineers, into its interactive
operations. Bally's Interactive also plans to open a technology
development center in Rhode Island
by the end of 2021, initially with 25 employees.
Wang stated, "We are pleased to be joining the Bally's family,
which has demonstrated a remarkable track record of growth and
diversification with a proven management team. We remain committed
to creating the world's best sports entertainment products, as well
as delivering innovative and exciting solutions for sports betting
and iGaming consumers across Bally's national footprint. Bet.Works
will continue to offer our best in class solutions to our existing
B2B clients and our future partners in the U.S. market as we expand
our reach into newly regulated states. Our turnkey solutions, which
include Marketing, Operations, Customer Service, Risk Management
and Compliance, combined with our dedicated launch teams, will
ensure we maintain a leading position in the B2B sector while
powering Bally's Interactive. Bally's is the perfect home for
Bet.Works as it will allow us to continue to grow and
innovate."
Bally's expects to close the transaction during the first quarter
of 2021, pending regulatory approval and other customary closing
conditions.
Bally's will host a conference call tomorrow at 8:30a.m. EDT to discuss the partnership.
David Wang will participate in the
conference call.
To access the conference call, please dial (833) 570-1160 (U.S.
toll-free) and reference conference ID 3282004. A webcast of the
conference call will be available via the Investors section of the
Company's website www.ballys.com. An online archive of the webcast
will be available for 120 days.
Advisor
Jones Day represented Bally's on
the transaction. Brownstein Hyatt Farber Schreck LLP represented
Bet.Works on the transaction.
About Bally's Corporation
Bally's Corporation currently owns and operates 10 casinos
across six states, a horse racetrack, and 13 authorized OTB
licenses in Colorado. With more
than 5,400 employees, the Company's operations include 11,859 slot
machines, 405 game tables and 2,538 hotel rooms. Properties include
Twin River Casino Hotel (Lincoln,
RI), Tiverton Casino Hotel (Tiverton, RI), Hard Rock Hotel & Casino
(Biloxi, MS), Casino Vicksburg
(Vicksburg, MS), Dover Downs Hotel
& Casino (Dover, DE), Bally's
Atlantic City (Atlantic City, NJ), Casino KC (Kansas City, MO), Golden Gates Casino (Black Hawk, CO), Golden Gulch Casino
(Black Hawk, CO), Mardi Gras Casino (Black Hawk, CO), and Arapahoe Park racetrack
(Aurora, CO). Following the
completion of pending acquisitions, which include Tropicana
Evansville (Evansville, IN),
Jumer's Casino & Hotel (Rock Island,
IL), Eldorado Shreveport Resort and Casino (Shreveport, LA), and MontBleu Resort Casino
& Spa (Lake Tahoe, NV), the
Company will own and operate 14 casinos across 10 states. Its
shares trade on the New York Stock Exchange under the ticker symbol
"BALY."
About Bet.Works
Bet.Works is a U.S.-based technology and services company
delivering the most advanced iGaming and sportsbook products. Its
flexible suite of proprietary solutions, coupled with a
sophisticated managed service offering, uniquely position Bet.Works
to provide US-ready solutions to enterprise, tribal and regional
clients. Bet.Works is the only company to have concurrently been
granted GLI 19 & 33 certifications. For more information,
please visit www.bet.works.
Forward Looking Statements
This communication contains "forward-looking" statements as that
term is defined in the federal securities laws. All statements,
other than historical facts, including future financial and
operating results and Bally's plans, objectives, expectations and
intentions, legal, economic and regulatory conditions are
forward-looking statements.
Forward-looking statements are sometimes identified by words
like "may," "will," "should," "potential," "intend," "expect,"
"endeavor," "seek," "anticipate," "estimate," "overestimate,"
"underestimate," "believe," "could," "project," "predict,"
"continue," "target" or other similar words or expressions.
Forward-looking statements are based upon current plans, estimates
and expectations that are subject to risks, uncertainties and
assumptions. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. The inclusion of
such statements should not be regarded as a representation that
such plans, estimates or expectations will be achieved. Important
factors that could cause actual results to differ materially from
such plans, estimates or expectations include, (1) that one or more
closing conditions to Bally's proposed transactions, including
regulatory approvals, may not be satisfied or waived, on a timely
basis or otherwise, including that a governmental entity may
prohibit, delay or refuse to grant approval for the consummation of
the proposed transactions or may require conditions, limitations or
restrictions in connection with such approvals; (2) the risk that
the proposed transactions may not be completed on the terms or in
the time frame expected, or at all; (3) the risks that U.S. sports
betting and iGaming will not increase as expected by management,
unexpected costs, charges or expenses resulting from the proposed
transactions, and risks involved in integrating a
technology-focused company into Bally's; (4) the occurrence of any
event that could give rise to the termination of the proposed
transactions; (5) risks related to acquisitions and the integration
of the businesses and assets acquired; (6) the financial
performance of the acquired businesses; (7) potential adverse
reactions or changes to business or employee relationships,
including those resulting from the completion of the proposed
transactions; (8) the possibility that the anticipated operating
results and other benefits of the proposed transactions are not
realized when expected or at all; (9) local risks including
proximate competition, potential competition, legislative risks and
local relationships; (10) uncertainty surrounding the ongoing
COVID-19 outbreak; and (11) other risk factors as detailed under
Part I. Item 1A. "Risk Factors" of Bally's Annual Report on Form
10-K for the fiscal year ended December 31,
2019 as filed with the Securities and Exchange Commission
("SEC") on March 13, 2020 and Bally's
subsequent Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2020, June 30, 2020 and September 30, 2020 as filed with the "SEC" on
May 14, 2020, August 13, 2020 and November 6, 2020, respectively. The foregoing
list of important factors is not exclusive. Any forward-looking
statements speak only as of the date of this communication. Bally's
does not undertake any obligation to update any forward-looking
statements, whether as a result of new information or development,
future events or otherwise, except as required by law. Readers are
cautioned not to place undue reliance on any of these
forward-looking statements.
Investor Contact
Steve Capp
Executive Vice President and Chief Financial Officer
401-475-8564
investorrelations@ballys.com
Media Contacts
Richard Goldman / David Gill
Kekst CNC
646-847-6102 / 917-842-5384
BallysMediaInquiries@kekstcnc.com
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SOURCE Bally's Corporation