International Interactive revenue down 5% for Bally’s despite UK surge 

Bally’s has posted Q3 group revenue of $630m (£487m) representing a 0.4% year-on-year (YoY) decrease as land-based operations and its International Interactive arm failed to improve on Q3 2023. 

On the International Interactive front, revenue amounted to $230.9m, which represents a fall of 5.3% when compared to the corresponding period last year, while adjusted EBITDAR climbed 5.3% to sit at $90m. 

The revenue decline was driven by “lingering weakness in other non-UK markets, with a particular emphasis on the ongoing logistical challenges impacting business in Asia”, according to CEO Robeson Reeves.

Earlier this week, Bally’s revealed that it was parting ways with its Asia-facing online division as part of an undisclosed deal with the segment’s current management team. 

The firm had a strong presence within the Asian market, operating four brands in Japan alone, including online casino market leader Vera & John. 

However, the New York-listed operator’s online efforts within the UK returned positive results, with revenue up 12% YoY. 

Though the firm declined to report the specific figure generated by its UK online efforts, Bally’s Reeves did shed light on what factors were behind the strong display. 

“UK growth was driven by all-time high active customer levels and robust average revenue per user metrics along with growing traction for our online sports betting offerings, which include a newly launched Bally’s-branded product that joins our initial Jackpotjoy offering,” Reeves explained. 

While speaking on the company’s earnings call, the Bally’s CEO added that the company’s UK segment also benefited from “continued share gains and cost-effective customer acquisition”. 

Reeves revealed that during Q3 Bally’s has acquired Aspers Casino in Newcastle, where the firm hopes to leverage its online player base and use an omnichannel approach to further establish itself in the country. 

The Bally’s chief added: “Flow-through in our International Interactive segment remains very healthy as a result of diligent UK marketing spend, management of compensation expenses along with the continued realisation of synergies from our technology platform consolidation.” 

Elsewhere within the operator’s International Interactive segment, Spain reported a 6% YoY climb in revenue, thanks in large part to the reinstatement of an “attractive” welcome offer, as well as the nation backtracking on its blanket ban on gambling advertising. 

In North America, the business’ online operations returned a revenue growth of 54.5% YoY to reach $45.7m, although bosses did note an $11m adjusted EBITDAR loss.

Analysing how such gains were made in the US, Bally’s explained that a ramp-up in igaming efforts in Rhode Island, where Bally’s has a monopoly on the market, was a large contributor to the improvement. 

Reeves explained: “On balance, we remain very pleased with the ramp-up in our igaming operations in Rhode Island and results benefited from excellent performance in Pennsylvania during the quarter.  

“However, we were impacted to a certain extent by softness in New Jersey. Ultimately, our igaming product offering and Bally Bet OSB [online sportsbook] continue to garner positive player feedback, and we remain excited by the long-term promise embedded in this segment.” 

Reeves also outlined how he expects Bally Bet Sportsbook to expand into three more US states before the turn of the calendar year, before hinting at further expansion in 2025. 

Speaking on the firm’s earnings call, the CEO added: “Regarding our online sports betting rollout, Bally Bet is now live in 10 markets with plans to launch in an additional three states by the end of 2024, with additional expansion expected in 2025.” 

The full migration of Bally’s’ online sportsbook technology to White Hat Gaming’s platform is expected to be completed within the month. 

During the third quarter of this year, it was announced that Bally’s Corporation was being taken private, after it accepted a $18.25-per-share buyout from Standard General, the New York hedge fund led by Soo Kim, the current chair of the Bally’s board. 

The deal, which values the operator at $4.6bn, is anticipated to close during H1 2025.