Bally's May Consider Sale Of Sports Betting Unit

Bally’s (NYSE: BALY) could consider selling off its sports betting arm, Bally Bet, which includes iGaming and online sports wagering assets.

Rumors recently surfaced that Bally’s Corporation, the company that operates the Twin River Lincoln Casino Resort in Rhode Island, could consider selling its sports betting business. This is due to their lack of market share in the mobile sports wagering sector, as stated in the Off Shore Gaming Association (OSGA) blog post. According to an unidentified source, the company could opt to sell the sports betting unit in an effort to gain some value for investors rather than completely giving up on it like what happened with FOX Bet. It would be quite unexpected if Bally’s had extended plans for their sports betting product.

Bally Bet has made a name for itself in casino products and hotels, but has failed to make a significant impact in the realm of sports betting in the 34 states and Washington, DC with legalized wagering. Even though they had faith that their name recognition would push them to the top, they are only thriving in seven spots: Arizona, Colorado, Indiana, Iowa, New York, Virginia and Ontario, Canada, leaving a lot to be desired. It would appear that, unfortunately, Bally’s land-based casinos are not doing enough to help them achieve the success they’d hoped for in sports betting.

Land-Based Casinos Not Helping Bally’s Cause

iGaming market, trends in this key vertical are something to watch,” said research firm Morgan Stanley.

Based in Rhode Island, Bally’s is a regional casino operator running resorts on the Atlantic City Boardwalk and in Lake Tahoe, as well as the Tropicana on the Las Vegas Strip. However, despite this widespread presence, the company has failed to gain traction in the competitive sports betting market. Notably, the firm does not currently offer mobile sports wagering in either Nevada or New Jersey – two of the largest markets for this activity – and has very small market share in Colorado, where it runs four casinos. To make matters worse, its North American interactive unit suffered increasing losses in the second quarter. As such, research firm Morgan Stanley has noted the necessity of closely watching the trend in this vertical, given Bally’s stated plans to switch to a variable-cost tech strategy and observing the general trend of proceeding profitability across the US iGaming market.

This earnings season, Stifel analyst Jeffrey Stantial noted in a recent report that investors may be disappointed by the sequentially worsening losses for Bally’s in the OSB/iCasino space, potentially impacting their expectations for when the company will reach profitability. So, what does this mean for Bally’s in the sports betting space going forward?

What’s Next for Bally’s in Sports Betting Space

When it comes to the future of Bally’s online sports wagering arm, there are numerous options, including investing the required funds to grow its market share. This could prove to be expensive and not yield any returns due to FanDuel and DraftKings dominating the US industry. As suggested by OSGA, Bally’s could also perform in the business-to-business iGaming sector, supplying its popular brand for internet casinos and allowing partners to use the preferred sports betting name. Furthermore, given its licenses in specified states such as Arizona and New York, Bally’s may find eager buyers if it considers selling the online sports betting division. Nevertheless, putting a price on said unit is undecided.