Bally's Corporation has recently released its 10-Q report, providing a detailed look at the company's financial condition and operational performance. Bally's Corporation operates as a casino-entertainment company, owning and managing casinos across 10 states, a golf course in New York, a horse racetrack in Colorado, and has access to OSB licenses in 18 states. The company also owns online gaming operations, a sports betting platform, and an iCasino platform. Its casino operations include slot machines, table games, and hotel rooms. The company was formerly known as Twin River Worldwide Holdings, Inc. and changed its name to Bally's Corporation in November 2020. Bally's Corporation was incorporated in 2004 and is headquartered in Providence, Rhode Island.
In its 10-Q report, Bally's Corporation discussed its management’s discussion and analysis of financial condition and results of operations. The report included forward-looking statements, cautioning that these statements are not guarantees and are subject to risks and uncertainties. The company also highlighted important factors beyond those that apply to most businesses, such as risks related to mergers, unexpected costs, difficulties integrating completed acquisitions, rapid growth, regulatory restrictions, and limitations in agreements to which the company is subject.
As of June 30, 2024, Bally's Corporation owns and manages 15 land-based casinos in 10 states across the United States, one golf course in New York, and one horse racetrack in Colorado operating under the Bally's brand. The company's land-based casino operations include approximately 14,800 slot machines, 600 table games, and 4,000 hotel rooms, along with various restaurants, entertainment venues, and other amenities. Additionally, in 2021, Bally's Corporation acquired London-based Gamesys Group Ltd., expanding its geographical and product footprints to include an iGaming business with well-known brands providing iCasino and online bingo experiences to its global online customer base with concentrations in Europe and Asia and a growing presence in North America.
Bally's Corporation outlined its strategy and business developments, stating its intention to continue growing its business by actively pursuing the acquisition and development of new gaming opportunities and reinvesting in its existing operations. The company also emphasized its focus on interactive gaming as a significant strategic opportunity for future growth. Bally's Corporation aims to increase revenues at its casinos and resorts through enhancing the guest experience by providing popular games, restaurants, hotel accommodations, entertainment, and other amenities in attractive surroundings with high-quality guest service.
The company's business is organized into three reportable segments: (i) Casinos & Resorts, (ii) International Interactive, and (iii) North America Interactive. The Casinos & Resorts segment includes 15 land-based casino properties, one horse racetrack, and one golf course. The International Interactive segment includes Gamesys, primarily a business-to-consumer iCasino operator. The North America Interactive segment includes Bally's Interactive, primarily a business-to-consumer online iGaming and online sportsbook operator, as well as consumer-facing service and marketing engines.
Bally's Corporation also provided information about its Rhode Island Regulatory Agreement, which contains financial and other covenants that restrict the company's acquisition of stock and other financial interests, relate to the licensing and composition of members of its management and Board of Directors, prohibit certain competitive activities and related-party transactions, and restrict the company's ability to declare or make restricted payments if its leverage ratio exceeds a certain threshold.
The company also discussed macroeconomic and other factors that impact its business, such as global economic challenges, public health crises, rising inflation, rising interest rates, and supply-chain disruptions. Bally's Corporation highlighted that its business is subject to risks caused by these challenges, which can negatively impact discretionary consumer spending and result in a reduction in visitors to its properties.
Bally's Corporation uses consolidated Adjusted EBITDA and segment Adjusted EBITDAR as key performance indicators to analyze the performance of its business. These non-GAAP measures are used to evaluate operating performance and are considered by many to be key indicators of the company's operating results.
In addition, the company entered into a Merger Agreement with SG Parent, LLC, the Queen Casino & Entertainment, Inc., Epsilon Sub I, Epsilon Sub II, and SG Gaming. Subject to the terms and conditions set forth in the Merger Agreement, SG Gaming will contribute to the company all shares of common stock of Queen that it owns in exchange for shares of common stock of the company.
Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $17.15. If you want to know more, read the company's complete 10-Q report here.
