Bally’s Shareholders Approve Standard General Takeover

In July, Bally’s Corporation, a global casino-entertainment company known for its growing online sports betting and iGaming presence, announced a significant $4.6 billion acquisition deal with Standard General, a hedge fund based in New York City. Under this agreement, Standard General, Bally’s most substantial investor, will purchase the company’s outstanding shares at $18.25 each, which is a substantial 71% premium over Bally’s 30-day average share price as of March 8. This marks another chapter in the casino giant’s efforts to fortify its financial standing and expand its operational scope amidst an increasingly competitive market.

The terms of the acquisition received overwhelming support from Bally’s stockholders during a special meeting held on November 19. Notably, the merger agreement includes The Queen Casino & Entertainment (QC&E), a portfolio company majority-owned by Standard General. The agreement was propelled forward by the majority vote from unaffiliated shareholders, though shares owned by Standard General, Sinclair Broadcast Group, and certain Bally’s executives were excluded from the voting process. Following the merger, Bally’s will maintain its status as a publicly traded entity, with shares temporarily trading under the ticker symbol “BALY.T” on the New York Stock Exchange to ensure their validity

Completion of the merger is projected for the first half of next year, contingent upon regulatory approvals and standard closing conditions. Soohyung “Soo” Kim, managing partner and chief investment officer at Standard General, highlighted the strategic benefits of this acquisition. Kim emphasized the significant cash premium for Bally’s stockholders and the potential for long-term growth. Integrating QC&E assets will likely bolster Bally’s growth prospects, given QC&E’s current management of four casinos located in Illinois, Iowa, and Louisiana, and two sports betting partnerships.

Once the merger is finalized, the combined entity is expected to operate 19 gaming facilities across 11 states, alongside a diverse portfolio of digital gaming and sports betting services. However, the third-quarter results of 2024 indicated some hurdles with a 0.4% year-over-year revenue dip to $630 million, primarily from declines in other segments despite gains in the UK online and North America Interactive segments. Adjusted EBITDA fell to $137.7 million, and net losses widened to $247.9 million. Bally’s CEO, Robeson Reeves, attributed the results to ongoing progress in key U.S. markets and the recent finalization of a management buyout of Bally’s Asian interactive division, aimed at allowing