In a pivotal decision on 19 November 2024, Bally’s Corporation stockholders voted overwhelmingly to approve the proposed merger with The Queen Casino & Entertainment, a portfolio company backed primarily by Bally’s largest shareholder, Standard General LP. This monumental agreement sets the stage for significant transformations within Bally’s operational framework and strategic positioning in the gaming industry.

Bally’s Corporation Stockholders Approve Merger with The Queen Casino & Entertainment

Strategic Significance of the Bally’s-Queen Merger

The approval signals a robust endorsement of Bally’s vision for future growth. A substantial majority of unaffiliated stockholders supported the merger, highlighting widespread confidence in the transaction. The deal represents a strategic consolidation, aiming to strengthen Bally’s foothold in the competitive gaming market while expanding its portfolio of properties and services.

Key Highlights of the Agreement

• The merger passed with an affirmative majority vote from unaffiliated stockholders.
• A non-binding advisory vote on executive compensation related to the transaction was also approved.
• Post-merger shares will trade under a new ticker symbol, “BALY.T”, on the New York Stock Exchange.

This merger, however, is contingent upon receiving regulatory approvals and meeting customary closing conditions, with completion anticipated in the first half of 2025.

Impact on Bally’s Operational and Financial Strategies

Ongoing Development Projects

The merger aligns seamlessly with Bally’s existing development goals, including:

• A $940 million Chicago casino, expected to be a transformative project in the Midwest gaming market.
• Redevelopment efforts for its Las Vegas property, further cementing Bally’s presence in the entertainment capital of the world.

These initiatives underscore Bally’s commitment to enhancing its brand and service offerings across key regions.

Financial Performance and Projections

Despite a slight dip in revenue during the third quarter of 2024, with earnings of $630 million (a 0.4% year-on-year decline), Bally’s North American Interactive revenue demonstrated resilience and growth. The company continues to strategically streamline its international operations, focusing on markets with the highest potential for long-term profitability.

Key financial highlights from Q3 2024 include:

• Growth in North American Interactive revenue, balancing declines in other segments.
• A strategic emphasis on key U.S. markets, showcasing Bally’s adaptability and market focus.

Stockholder Implications and Next Steps

Bally’s has outlined plans for additional election periods for stockholders to decide on the future of their shares, ensuring transparency and flexibility. Stockholders remaining post-merger will see their investments under the new ticker symbol, “BALY.T”, as the integration progresses.

The final report on the special meeting results will be submitted to the Securities and Exchange Commission (SEC), reflecting Bally’s adherence to regulatory requirements and commitment to corporate governance.

What the Leadership Says

Corey Plummer, Bally’s Chairman and CEO

Bally’s leadership has emphasized the merger’s potential to drive innovation and growth. CEO Corey Plummer stated, “This merger reflects our unwavering commitment to expanding Bally’s capabilities and reinforcing our leadership in the gaming and entertainment sectors.”

Ian D. Gardner, Head of Philanthropy, The Queen Casino

Ian D. Gardner commented, “This partnership represents a unique opportunity to enhance operational synergies and deliver unparalleled value to our stakeholders.”

Broader Implications for the Gaming Industry

This merger could reshape the competitive landscape of the gaming industry, creating a consolidated entity with enhanced resources and operational capabilities. The strategic alignment with Standard General LP provides Bally’s with additional financial leverage to pursue growth opportunities, streamline operations, and expand its customer base.

A Look at Bally’s Long-Term Vision

As Bally’s Corporation embarks on this transformative journey, the company remains focused on:

1. Expanding its footprint in U.S. markets, particularly through large-scale development projects.
2. Enhancing digital capabilities to align with evolving consumer preferences, particularly in online gaming and sports betting.
3. Streamlining international operations to maximize efficiency and profitability.

This merger serves as a critical step in achieving these objectives, paving the way for sustained growth and innovation.

Conclusion: The Merger

The merger between Bally’s Corporation and The Queen Casino & Entertainment signifies a bold step forward for the gaming giant. By aligning strategic goals, leveraging key market opportunities, and securing stockholder support, Bally’s is well-positioned to solidify its leadership in the gaming and entertainment industry.

FAQs About Bally’s Corporation and The Queen Casino & Entertainment Merger

1. What is the Bally’s Corporation and The Queen Casino merger about?

The merger involves Bally’s Corporation acquiring The Queen Casino & Entertainment, a portfolio company primarily owned by Bally’s largest stockholder, Standard General LP. This strategic move aims to strengthen Bally’s position in the gaming industry by consolidating resources and expanding its operational capabilities.

2. When was the merger approved?

The merger was approved by Bally’s stockholders on 19 November 2024 during a special meeting. The approval included a majority of unaffiliated stockholders and passed a non-binding advisory vote on executive compensation related to the transaction.

3. When is the merger expected to be completed?

The merger is anticipated to close in the first half of 2025, pending regulatory approvals and satisfaction of customary closing conditions.

4. What changes will occur for Bally’s stockholders post-merger?

Post-merger, Bally’s shares will trade under the new ticker symbol “BALY.T” on the New York Stock Exchange. Stockholders will also have opportunities to participate in additional election periods regarding their shares.

5. How does the merger align with Bally’s current development projects?

The merger supports Bally’s ongoing projects, including:

• The $940 million Chicago casino, which is expected to be a major attraction in the Midwest.
• The redevelopment of its Las Vegas property, aiming to enhance Bally’s presence in a highly competitive market.

6. How did Bally’s perform financially in Q3 2024?

Bally’s reported $630 million in revenue, a 0.4% year-on-year decline. While the company experienced growth in North American Interactive revenue, declines in other segments contributed to the slight dip.

7. What role does Standard General LP play in this merger?

Standard General LP, Bally’s largest stockholder, is a primary owner of The Queen Casino & Entertainment. The merger strengthens Bally’s financial and operational leverage through this partnership.

8. What does this merger mean for the gaming industry?

This merger represents a significant consolidation in the gaming sector, creating a more robust entity capable of competing effectively in key markets. It also highlights Bally’s commitment to innovation, growth, and delivering value to stakeholders.

9. What is the significance of the new ticker symbol “BALY.T”?

The new ticker symbol, “BALY.T”, reflects the post-merger entity’s integration and provides clarity for investors as the merger takes effect.

10. Where will Bally’s focus its expansion efforts after the merger?

Bally’s aims to expand in key U.S. markets, enhance its digital gaming capabilities, and streamline international operations to maximize efficiency and profitability.

11. How can stakeholders stay updated on the merger progress?

Bally’s Corporation will file a final report on the special meeting and merger outcomes with the Securities and Exchange Commission (SEC). Regular updates will also be provided through official company communications.

12. What benefits does the merger bring to Bally’s customers and partners?

The merger enables Bally’s to deliver improved services, larger-scale gaming experiences, and enhanced innovation through its expanded resources and capabilities.