Bally’s dives into proprietary sports betting with $125m Bet.Works deal
US casino giant inks acquisition and seals decade-long media partnership with Sinclair Broadcast Group
US land-based casino operator Bally’s has agreed a $125m (£94.5m) cash-plus-shares deal to acquire sports betting platform provider Bet.Works.
Under the terms of the acquisition, 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 acquisition is expected to complete during the first quarter of 2021, subject to approvals.
Bally’s will be split into two distinct operating divisions following the acquisition, with one reflecting the operator’s land-based casino and entertainment centres.
The second will form a new Bally’s Interactive division, which will encompass the operator’s existing sports betting and online gaming operations as well as the Bet.Works sports betting business.
“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,” Bally’s Corporation CEO George Papanier said.
“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,” Papanier added.
Bet.Works founder and CEO Wang will become the CEO of Bally’s Interactive division upon completion of the deal. Bet.Works’ existing team of 130 employees across its three offices – including 90 engineers – will transition into the new Interactive division.
In addition, the operator has revealed plans to open a technology development centre in Rhode Island by the end of 2021, initially home to 25 employees.
“Bally’s is the perfect home for Bet.Works as it will allow us to continue to grow and innovate,” Wang said.
“Bet.Works will continue to offer our best-in-class solutions to our existing B2B clients and our future partners in the US 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,” he added.
The news comes on the same day Bally’s agreed a significant long-term media rights deal with US firm Sinclair Broadcast Group.
The 10-year deal includes local broadcast stations and live regional sports networks, as well as digital and over-the-air television network Stadium.
Bally’s will integrate content into Sinclair’s 190 television stations across 88 markets and its sports networks, allowing the two to jointly market, design and integrate products on a state-by-state basis.
Sinclair’s existing Tennis Channel currently screens 95% of all live tennis being broadcast in the US, with Bally’s also gaining access to coverage of more than half of US MLB, NBA and NHL teams as part of the deal.
Over the term, Sinclair’s regional sports network portfolio will receive annual naming rights fees and a committed percentage of Bally’s Interactive’s marketing spend.
In addition, 21 existing Fox regional sports network brands will be rebranded using the Bally name.
Financial terms of the deal have not been disclosed, however Sinclair will also purchase a minority stake in Bally’s under the agreement.