Bally’s Corporation has completed its $4.6 billion deal with The Queen Casino & Entertainment, a portfolio company majority-owned by Standard General, Bally’s largest shareholder.

The billion-dollar transaction gives Standard General, an even tighter grip on Bally’s and marks a significant milestone in the company’s history. This merger is set to reshape the landscape of the gaming and entertainment industry.

As part of the deal, Queen’s shareholders will receive 30.5 million shares of Bally’s. Bally’s Corporation shareholders approved the merger with Queen Casino & Entertainment in November. The $4.6 billion offer, tabled in March and accepted by the operator in July, will see the hedge fund acquiring the company’s 22.8 million outstanding shares for $18.25 per share.

Deal at premium

The offer represents a 71 percent premium over Bally’s 30-day average share price from the last trading day prior to a previous offer from Standard General of $15. Bally’s has funded the transaction by issuing $500 million in senior secured notes due in 2028 set up through funds managed by Apollo. Furthermore, the company has also used available money and credit lines.

Bally’s stockholders, including shareholders, voted in favour of the merger agreement, securing the required majority vote. As detailed before, Bally’s will remain a publicly traded company post-completion of the merger.

The company said the shareholders who have opted to retain their shares will see them trade temporarily under the ticker symbol ‘BALY.T’ on the New York Stock Exchange before reverting back to the original ‘BALY’ on 10 February 2025.

This process is to make sure that these shares remain active and valid throughout the merger process and beyond.

In July, Standard General managing partner Soo Kim said the acquisition offers Bally’s stakeholders a significant cash premium. It also provides the opportunity to participate in its expanded portfolio’s long-term growth prospects. Kim said the incorporation of the complementary QC&E assets builds attractively on Bally’s profile. QC&E operates four casinos across Illinois, Iowa, and Louisiana. 

What will the combined company manage?

The combined company will manage 19 gaming facilities across 11 states, offering a diverse range of digital gaming and sports betting products. Bally’s also owns a golf course in New York and a horse racetrack in Colorado. The company also purchased new properties, including Belle of Baton Rouge and Casino Queen Marquette. Both of which are turning into land-based venues which should be ready by this year.

For the third quarter, Bally’s reported a minimal 0.4 percent revenue decline year-on-year to $630 million. This comes as growth in the UK online and North America Interactive segments offsetting declines elsewhere, growing 11.8 percent and 54.5 percent, respectively.

Adjusted earnings before interest, taxes, depreciation and amortisation fell slightly to $137.7 million for the quarter, while net loss widened to $247.9 million. CEO Robeson Reeves said the results were “relatively healthy,” citing progress in key US markets.

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