Bally's New CEO Adopts Data-Focused Strategy to Rejuvenate Sports Betting Division
In a bid to revitalise its struggling North American interactive unit, Bally's Corporation has announced a series of significant changes. The company is considering a new platform for its online sports betting service, with Intralot S.A. being a potential candidate. This move will see Bally's becoming the majority shareholder of Intralot, creating a global gaming technology and services company for lottery and digital online gaming markets.
The decision comes after Bally's recorded an impairment charge of approximately $390 million, largely due to write-downs with online gaming acquisitions of Bet.Works and Monkey Knife Fight. Bally's purchased Bet.Works in November 2020 for approximately $150 million, and acquired Monkey Knife Fight in January 2021 for approximately $90 million.
Bally's is currently facing challenges with its sports betting tech platform, which has resulted in significant losses in its North American interactive unit. To address this, the new CEO, Robeson Reeves, plans to institute dramatic changes to jumpstart the interactive unit, including replacing the current tech platform provider.
Reeves will also oversee efforts to win a license for a proposed Bronx casino, which Bally's is working on. However, the company is feeling pressure to erase losses within its North American online unit in the coming months.
The online division consists of Bally's sports betting and iGaming segments. Bally's projects adjusted EBITDA losses in the range of $40 million to $50 million in full-year 2023 from its North American unit. Despite the losses, Bally's now expects the division to be profitable in 2024.
In a bid to streamline operations, Bally's has announced job cuts within its digital division, which could reduce the unit by as much as 15%. If Bally's divests Monkey Knife Fight, it may sell the fantasy sports unit at a fraction of the original price.
Meanwhile, Diamond Sports Group, which owns the Bally Sports Regional Sports Networks, skipped a $140 million interest payment earlier this month. Diamond Sports Group may be headed toward an $8.6 billion restructuring in U.S. Bankruptcy Court. Bally's has no liability related to Diamond's debt.
Bally's is considering third-party providers such as Kambi, OpenBet, and GAN Sports for its new sports betting tech platform. If the acquisition of Intralot S.A. goes through, Bally's will be well-positioned to compete in the global gaming market.
In other developments, Bally's Corporation has named Robeson Reeves as its new CEO, replacing Lee Fenton. Reeves brings a wealth of experience to the role, having previously served as the CEO of Caesars Digital, the digital division of Caesars Entertainment.
As Bally's navigates these changes, it remains committed to delivering value to its shareholders and customers, and to positioning itself for long-term success in the competitive gaming industry.
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