Bally’s shareholders approve $4.6bn takeover by Standard General

Bally’s Corporation has accepted an increased offer for the business from New York-based hedge fund Standard General, a transaction that values the land-based and online operator at $4.6bn (£3.57bn).

The deal will see Standard General, Bally’s largest investor, pay $18.25 per share, representing a 71% premium over the Rhode Island-headquartered operator’s 30-day volume weighted average price per share as of 8 March 2024.

This was the last trading day before Standard General tabled a $15-a-share offer for the Jackpotjoy and Bally Casino parent company back in mid-March. Today’s news sent Bally’s shares soaring more than 24% in New York.

Standard General has already obtained $500m through committed financing to fund the deal that will also see Bally’s combine with The Queen Casino and Entertainment (QC&E), a regional casino operator majority-owned by funds managed by Standard General.    

Alongside Standard General, Sinclair Broadcast Group and Noel Hayden, founder of Bally’s-owned Gamesys, have committed to support the takeover and to make rollover elections.  

As a result, at least 47% of Bally’s outstanding fully diluted equity interests will be rolled over into the newly merged organisation. 

Bally’s stockholders have the option to retain all or a portion of their Bally’s stock via a rollover election. Any stockholders that choose to exercise this option will continue as stockholders of the merged company.  

The agreement, estimated to complete in the first half of 2025, is still subject to regulatory approvals and satisfaction of other customary closing conditions. 

Bally’s CEO Robeson Reeves viewed the deal as an ideal opportunity to “add further geographic and market diversity” to the company’s growing portfolio. 

He said: “Our team is well positioned to continue to execute on our initiatives to drive growth across all our segments including in our International Interactive business, North America Interactive and our Casinos & Resorts (C&R) segments while proceeding with our development pipeline, including construction of our permanent casino resort in Chicago, for which we recently announced a comprehensive financing plan.

“The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio.  

“With QC&E’s development pipeline recently completed or already well underway, we see a path toward additional revenue and EBITDAR growth and value accretion as those projects are completed in 2025. We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision,” the CEO added. 

QC&E currently operates four casino brands across Iowa, Louisiana and Illinois.

The deal will expand QC&E’s portfolio to 19 gaming, entertainment and hospitality facilities across 11 states and enhance Bally’s development pipeline with several exciting projects. 

Soo Kim, managing partner of Standard General, commented: “The transaction provides Bally’s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline.  

“The addition of the complementary QC&E assets builds upon the company’s [Bally’s] attractive growth profile. We look forward to working with the board of directors and the company’s senior management team as they continue to execute on their business plan,” he added.