Bally’s Corp, the giant U.S. casino operator and owner of the recently closed Tropicana Las Vegas, has accepted a $4.6 billion takeover bid from New York-based hedge fund Standard General. It will buy Bally’s for $18.25 a share.
Bally’s chairman Soo Kim is a managing partner of Standard General. Prior to this recent offer, Standard General was already Bally’s largest shareholder.
“The transaction provides Bally’s stockholders with a significant cash premium, along with certainty of value for their investment, or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline,” Kim said in a press release.
The Rhode Island-based Bally’s operates fifteen casinos across eight states. It also owns the historic Tropicana Las Vegas, which it recently closed to make way for a potential major league baseball stadium. Bally’s also plans to, at some point, rebuild a new casino hotel on the 35-acre site.
The $4.6 billion takeover from Standard General comes two years after 2022’s failed $2 billion bid from the hedge fund, which Bally’s shareholders rejected.
The deal will add another five casino properties to Bally’s portfolio. It will be merging with Standard General-owned The Queen Casino & Entertainment, which operates casinos in Louisiana, Illinois, and Iowa.
Bally’s History
The name Bally’s has a long history in Las Vegas, with the original Bally Manufacturing having made slot games for Sin City casinos between 1983 and 1996.
During that time, it also bought the original MGM Grand Hotel and Casino on the Las Vegas Strip and renamed it Bally’s Las Vegas. It then eventually changed its name to Bally Entertainment before going through a series of mergers and takeovers.
Bally Entertainment would then play an important role in the company that would become the giant Las Vegas-based Caesars Entertainment. Via various sales, including to Hilton Hotels, Park Place Entertainment, and Harrah’s, the Bally brand eventually became part of the current Caesars Entertainment in 2020.
The current operator Bally’s Corporation is newer on the scene. Previously known as Twin River Holdings, it rebranded as Bally’s when, in 2020, it bought the rights to the name from Caesars.
Caesars kept Bally’s Las Vegas, which it rebranded as The Horseshoe. But Bally’s Corp purchased Bally’s Atlantic City from Caesars, which it operates to this day.
The Deal and The Future
Bally’s hasn’t been in the best financial shape in recent years, but it has been spending big, aiming for future growth. This strategy will be aided by fresh investment from Standard General. The $4 billion deal represents a 70% premium on Bally’s average share price over the last 12 months.
Among other growth targeting projects, 2022 saw Bally’s selected to open the first casino resort in downtown Chicago. In 2023, it opened a temporary casino venue at the historic Medinah Temple site. Its giant $1.7 billion Bally’s Chicago casino resort is expected to open in 2026.
Bally’s also moved into sports betting, which has, so far, not been the most profitable endeavor. Its BallyBet platform has consistently failed to gain much market share against the leading U.S. operators DraftKings and FanDuel. In 2021, it acquired daily fantasy sports operator Monkey Knife Fight, but then closed it just two years later.
This new deal will secure Bally’s a huge funding boost, as it also seeks to be the recipient of one of three upcoming new licenses for casino gaming in downstate New York.
The company will be looking to make returns on its $148 million investment in the Tropicana Las Vegas, a property it acquired in 2022 and then closed two years later.
As well as a potential stadium for a newly-formed Las Vegas A’s MLB team, Bally’s wants to build a new Las Vegas Strip casino resort on the site.
Bally’s employs approximately 10,600 people and Queen Casino & Entertainment has about 900 employees.
The deal is expected to close in the first half of 2025.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
