Bally’s Could Mull Sale of Online Sports Wagering Unit
Bally’s (NYSE: BALY) Bally Bet arm, which includes the operator’s portfolio of iGaming and online sports wagering assets, could consider a cut-rate sale of the sports betting segment.
That rumor recently appeared in a post on the Off Shore Gaming Association (OSGA) blog, which notes that although Bally’s recently proclaimed plans to revamp its online sports betting trading operations through a young technology partnership with Kambi, the society is struggling to attain passable securities industry portion out in the states in which it offers wandering sports wagering. An unidentified source told the publishing that Bally’s could looking to sell the sports betting social unit inwards an exertion to wrench some value come out of it for investors kinda than simply letting the business pop off a lah FOX Bet.
I’d be quite surprised if Bally’s has any real long-term plans for their sports betting product. Undoubtedly, the companion believed its epithet acknowledgement would occupy it to the top, but they are really known for their land-based gambling casino products and hotels, non sports betting,” the seed told OSGA.
Bally Bet is unrecorded in simply half a dozen states — Arizona, Colorado, Indiana, Iowa, New York, VA — as well as Ontario, Canada. That’s a skimp percent of the 34 states and Washington, DC in which sports wagering is live and legal.
Land-Based Casinos Not Helping Bally’s Cause
Rhode Island-based Bally’s is a regional casino operator with properties in 10 states, but those venues aren’t helping the companion long pillow its sports wagering status.
For example, the unshakable runs namesake cassino resorts on the Atlantic Ocean City Boardwalk and inwards Lake Tahoe as well as the Tropicana on the Las Vegas Strip, but it doesn’t offer up nomadic sports wagering inwards Sagebrush State or New island of Jersey — II of the biggest sports betting markets inward the country. Likewise, Bally’s runs quartet casinos in Colorado, but it has negligible sports betting marketplace apportion inwards that state.
Compounding Bally’s woes on the digital gaming forepart is the peak that its North American interactive unit endured increased losses inward the endorse quarter.
“Given BALY’s stated transition to a variable-cost tech strategy and a trend towards profitability seen crossways the broader U.S. OSB/iCasino blank this earnings season, we view sequentially worsening losses as dissatisfactory for investors and potentially impacting expectations for timing to inflect to profitability,” wrote Stifel analyst Jeffrey Stantial in a recent report.
What’s Next for Bally’s inwards Sports Betting Space
Bally’s has options when it comes to the future of its online sports wagering arm, including devoting the financial resources necessary to step-up its marketplace share. However, that wouldn’t live cheap and the strive mightiness not make up turned granted that the US regulated sports wagering landscape painting is dominated by just deuce participants — FanDuel and DraftKings.
Likewise, as OSGA points out, Bally’s could turn over existence a business-to-business participant in the iGaming space, potentially licensing out its well-known firebrand for internet casinos spell allowing partners to employ the sports betting trademark of their choice.
As for a sale of the online sports betting unit, Bally’s could find interested suitors due to its licenses in states, such as Arizona and New York, that bound the list of such permits. How practically prospective buyers are willing to pay is another matter.
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