A recent transaction may result in one of the oldest casinos in Atlantic City getting much-needed attention.
Just days before it releases second-quarter earnings, Bally’s Corp. announced on Thursday that it accepted a buyout offer from Standard General, the hedge fund of Bally’s chairman Soo Kim. A Bally’s special committee unanimously recommended the deal, one that was then approved by the board of directors.
Bally’s stockholders will receive $18.25 per share as part of the deal. In addition, Bally’s will merge with The Queen Casino & Entertainment Inc. (QC&E), another gaming company owned by Standard General.
While that creates a total of 19 casinos across 11 states for the combined company now, just how does this deal affect Bally’s Atlantic City?
How merger affects Bally’s Atlantic City
According to a press release announcing the deal, Standard General obtained $500 million of committed financing to support the transaction.
Because of the national reach of Bally’s, the announcement did not include specifics regarding Bally’s Atlantic City.
But a statement from Robeson Reeves, the Bally’s CEO, provided some insight into the merger’s effect on the land-based business as well as in the NJ online casinos industry.
Reeves noted that Bally’s now becomes “well positioned” to grow its iGaming and retail segments. And with QC&E now in its corner, Reeves said in the press release, Bally’s can “see a path toward additional revenue.”
“We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.”
Bally’s has struggled in NJ gambling landscape
Of the nine casinos in Atlantic City, only two have been around longer than Bally’s, which opened its doors in December 1979.
But since 2016, only one property (Resorts) has performed worse in terms of Atlantic City casino revenue.
Over that time, Bally’s has totaled $1.4 billion in total revenue. In 2024, Bally’s has reported just $71.6 million, which ranks last among retail casinos. That came on the heels of 2023 reporting, which saw Bally’s total $155.2 million, the second-lowest in Atlantic City.
That trend is similar to NJ online gambling revenue, where Bally’s has reported $178.7 million from online partners since 2013. It stands as the third-lowest total, but one licenseholder (Ocean) got into the game five years later than Bally’s and is just 12% behind.
The individual Bally’s Online Casino NJ has ranked in the upper third of the market each month in 2024, totaling $5.5 million. But it still is a far cry from the top tier, with that figure accounting for just 3% of the market.
Certainly Bally’s will want to invest in the iGaming sector, which became clear when the company shut down its sportsbook operations last year.
