Bally’s Corporation released its Q4 results on March 5, posting a 5.1% revenue decline. Investors reacted poorly to the news, causing its stock price to fall nearly 24%. The company canceled its earnings call, which had been scheduled for that day, without explanation but in the wake of the market’s reaction.
Ownership of Bally’s shifted dramatically last month as it completed its merger with Standard General. As a result of the deal, a majority of former Bally’s shareholders accepted a buyout at $18.25 per share, 45% more than they’re worth after this week’s drop. At the same time, Standard General issued new Bally’s shares to stakeholders in its affiliate, The Queen Casino & Entertainment, who now own a greater number of shares than the portion of Bally’s original investors who elected to keep their stake rather than accepting the buyout.
While overall revenue declined, the North American Interactive division—which, before the deal, was often the target of criticism by Bally’s investors—provided a bright spot with more than a 24% increase in the quarter. For the full fiscal year 2024, that division, which includes Bally Bet sportsbook, Bally Casino, and Monopoly Casino, grew 58%. That helped the company to post a modest 0.8% revenue increase to $2.45 billion.
In a press release, Bally’s CEO, Robeson Reeves, called 2024 “a transformational and transitional year” for the company. Notable events included the acquisition agreement with its largest shareholder, Standard General, and a deal with the Athletics (A’s) baseball team to build a ballpark at the Tropicana Las Vegas site. Other milestones included the relaunch of Bally Bet with a new technology platform and the launch of Bally Casino in Rhode Island.
Bally’s did not provide a reason for canceling the earnings call. However, the cancelation came shortly after the company’s stock fell to $12.99 at market close on March 5, down from $17 the previous day. The stock declined further on the March 6 market opening, dipping to $12.26.
Mixed Q4 results
Bally’s generated $580.4 million in revenue for the fourth quarter, missing analysts’ forecasts and marking a 5.1% decline year over year. Segment results included:
- Casinos and Resorts: Revenue of $324.4 million, a decrease of 5.2% YoY. The
- International Interactive: Revenue of $214.5 million, down 9.1% YoY. However, UK online revenue grew by 11.3%.
- North America Interactive: Revenue of $41.5 million, up by 24.4% YoY.
Reeves noted that challenges included weaker regional gaming performance and struggles with the Chicago temporary casino. The temporary location has continued to perform below the company’s expectations since its opening in September 2023. However, the CEO added that Chicago customers are “increasingly excited” about the permanent casino project, whose construction has begun with the expectation of a 2026 opening.
While the North America Interactive segment grew significantly, it recorded an Adjusted EBITDAR loss of $12.3 million. Reeves attributed that to the transition to the new technology platform and projected a reverse impact for Q1 2025. In Q4, the company launched Bally Bet in Tennessee and rebranded Virgin Casino to Monopoly Casino in New Jersey.
Bally’s completes Standard General deal
Though not included in Q4 results, Bally’s announced the completion of the Standard General takeover and the merger with four The Queen Casino and Entertainment properties, previously owned by funds managed by Standard General. According to Reeves, the transactions position the company for “compelling long-term growth.”
Bally’s stockholders approved the Standard General takeover in July last year, despite opposition from K&F Growth Capital, a minority shareholder. As part of the deal, Queen shareholders received 30.5 million Bally’s shares. Meanwhile, Standard General paid $18.25 per share to holders of 22.8 million outstanding shares. Meanwhile, stockholders of 17.9 million shares opted to retain their stock through a rollover election.
After the transactions, Bally’s remains a public company with 48.4 million shares of outstanding common stock. However, the share price has experienced high volatility since the beginning of the year. In January, it was trading as high as $20 per share, but on March 6, it closed at $12.53. While some of this volatility can be attributed to mixed financial results, it also reflects the broader uncertainty in the stock market, which has been particularly volatile since President Trump took office, partly due to concerns over tariffs.
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