Bally’s Corporation completes $4.6bn merger with Standard General and The Queen Casino & Entertainment

Bally’s Corporation has finalised its landmark $4.6 billion merger with Standard General L.P. and its affiliate, The Queen Casino & Entertainment Inc., marking a transformative step in the company’s growth strategy. This merger not only consolidates Bally’s position as a major player in the U.S. gaming and entertainment industry but also sets the stage for expanded operations across key domestic and international markets.

With this deal, Bally’s Corporation significantly strengthens its presence in the casino and online gaming sectors, aligning with broader trends shaping the future of the global gambling industry. The merger was first announced in July 2024, with Bally’s shareholders receiving both cash consideration and stock options as part of the agreement.

What does Bally’s merger with Standard General mean for the casino industry?

The merger between Bally’s Corporation and Standard General represents more than just a business transaction—it signals a strategic shift in the competitive landscape of the U.S. casino and entertainment sector. Bally’s issued 30.5 million shares to shareholders of The Queen Casino & Entertainment, while also paying $18.25 per share in cash to holders of 22.8 million of its outstanding shares.

The cash consideration, representing a 71% premium over Bally’s 30-day volume-weighted average price prior to Standard General’s initial acquisition proposal, was financed through $500 million in senior secured notes due in 2028. This funding was provided exclusively by Apollo-managed funds, supplemented by Bally’s available cash reserves.

This merger significantly expands Bally’s operational footprint. The company now owns and manages 19 casinos across 11 U.S. states, a golf course in New York, and a horse racetrack in Colorado. The addition of The Queen Casino & Entertainment’s properties, including the Belle of Baton Rouge and Casino Queen Marquette, which are undergoing land-based conversions set for completion in 2025, enhances Bally’s physical asset base.

How will the merger impact Bally’s stock performance?

The merger has introduced a complex dynamic for Bally’s stock performance, with shareholders having the option to either accept cash payouts or retain their equity through a rollover election. Approximately 17.9 million outstanding shares were retained by shareholders who opted to remain invested in the company. As a result, Bally’s now has 48.4 million shares of common stock outstanding, along with warrants representing rights to purchase up to 11.6 million additional shares.

Importantly, Bally’s common stock, which had been temporarily trading under the ticker symbol “BALY.T,” will revert to its original “BALY” ticker on the New York Stock Exchange starting February 10, 2025. This move is anticipated to generate renewed investor interest, as the merger’s completion signals operational stability and growth potential.

Jaymin Patel, Chairman of Bally’s Special Committee, stated that the cash consideration from Standard General provides immediate value for shareholders. He emphasised that the merger strengthens Bally’s long-term growth prospects while delivering short-term financial benefits.

What growth opportunities will the merger unlock for Bally’s?

The merger is a strategic response to the evolving dynamics of the global gaming industry, particularly as casino industry growth increasingly hinges on both physical and digital platforms. Bally’s is not just expanding its brick-and-mortar operations but also aggressively scaling its digital presence.

The company holds online sports betting licenses in 13 North American jurisdictions through its North America Interactive segment. Bally Bet, Bally’s flagship sports betting platform, continues to gain traction, alongside Bally Casino, an iCasino platform currently active in four U.S. states. Furthermore, Bally’s Interactive International division (formerly known as Gamesys Group) positions the company as a global leader in interactive gaming.

In addition to its gaming ventures, Bally’s maintains a significant economic stake in Intralot S.A., a global lottery management firm. This diversified portfolio allows Bally’s to capitalise on multiple revenue streams, insulating it from market fluctuations that may affect individual segments.

What role did financial backing play in the merger’s success?

The success of the Bally’s merger hinged on robust financial backing. Apollo’s commitment of $500 million in senior secured notes was instrumental in funding the cash portion of the transaction. This financing structure provided Bally’s with the liquidity needed to execute the merger without over-leveraging its balance sheet.

Moreover, key stakeholders such as Sinclair Broadcast Group and Noel Hayden supported the merger, committing to rollover elections that ensured nearly 47% of Bally’s fully diluted equity interests remained invested in the combined company. This strong backing from influential investors underscores confidence in Bally’s growth strategy.

Robeson Reeves, Chief Executive Officer of Bally’s, highlighted that the merger aligns with the company’s long-term objectives, including the development of its permanent casino resort in Chicago. Reeves noted that the integration of The Queen Casino & Entertainment’s properties complements Bally’s existing assets, enhancing market diversity and positioning the company for sustained revenue and EBITDAR growth.

What are the regulatory and operational implications of the merger?

While the merger has officially closed, certain regulatory approvals remain pending. The transaction requires final consent from relevant gaming and financial regulatory bodies, as well as shareholder approvals for specific post-merger actions. Bally’s anticipates completing these formalities in the first half of 2025.

Operationally, the merger accelerates Bally’s development pipeline. The company’s focus on casino industry growth is evident in its planned projects, including the transformation of riverboat casinos into land-based facilities and the expansion of its online gaming platforms. These initiatives are expected to generate meaningful revenue growth as they come online over the next 12 to 24 months.

Soo Kim, Managing Partner of Standard General, expressed optimism about the merger’s potential to deliver value. He noted that Bally’s now benefits from a diversified portfolio that balances mature, revenue-generating assets with high-growth development projects.

What’s next for Bally’s Corporation?

Looking ahead, Bally’s Corporation is well-positioned to leverage the synergies created through this merger. The company’s diversified portfolio, combined with a strategic focus on both physical and digital gaming platforms, provides a solid foundation for future growth.

Investors will closely monitor Bally’s stock performance in the coming quarters to assess the merger’s impact. Analysts suggest that the company’s expanded asset base, combined with its aggressive push into online gaming, could drive significant shareholder value over the long term.

The merger with Standard General and The Queen Casino & Entertainment marks a new chapter for Bally’s—one defined by strategic expansion, financial resilience, and a commitment to innovation in the gaming industry.