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Bally’s Corp. (NYSE: BALY) reported financial results for the first quarter (Q1 2024), ending March 31, 2024.
Overall, the first quarter of the year proved successful for Bally’s. Company CEO Robeson Reeves said Q1 2024 results show a “strong” start to the year, with progress across two of the company’s three main divisions. Reeves commented in the Bally’s Q1 2024 press release:
“Bally’s is off to a solid start in 2024, driven by revenue growth in our Casinos & Resorts and North America Interactive segments.”
While North America Interactive and Casino & Resorts revenue rose, International Interactive revenue declined regardless of the UK growth.
After Bally’s closed 2023 with healthy results across all business segments, the company recently posted first-quarter 2024 financial highlights:
- Company-wide revenue of $618.5 million, an increase of 3.3% year-over-year
- Casinos & Resorts revenue of $342.3 million, up 4.1% year-over-year
- International Interactive revenue of $234.7 million, down (4.4)% year-over-year
- North America Interactive revenue of $41.5 million, a 70.2% year-over-year rise
- Successfully launched iGaming in Rhode Island as the sole provider
- Closed Tropicana Las Vegas to prepare for the Las Vegas A’s relocation to a portion of our Tropicana site
Bally’s reports strong start to year, with US being the most successful
In its earning call, the company said the North American Interactive segment delivered a solid quarter, as iGaming operations continue to gain share in New Jersey and Pennsylvania.
The annual revenue increase of over 70% was partly influenced by Bally’s online casino launch in Rhode Island, with the company being the only licensed operator in the state. Reeves pointed out:
“We also successfully continued the rollout of our Bally Bet online sports betting in the United States, which, as we’ve mentioned many times before, we view as a funnel for iGaming growth. We are very pleased with our transition onto the Kambi and White Hat platforms and believe this transition has been well received by our customers.”
The Bally’s CEO also emphasized that the North American Interactive Segment should incur an adjusted EBITDA loss of about $30 million in 2024. However, Bally’s anticipates that its loss will decrease in a non-linear fashion as the year progresses.
Bally’s had a prosperous Rhode Island launch in March 2024
Momentum could continue for the company’s North American segment into Q2 following Bally’s online casino rollout in Rhode Island in March. In the first month of operation, Bally’s online casino in Rhode Island generated $1.2 million in gross gaming revenue.
As Reeves explained: “iGaming revenues in Rhode Island have ramped nicely through April in accordance with expectations, and we believe this momentum will continue to build through the balance of 2024.”
SVP Finance and Corporate Treasurer at Bally’s Corp. Charlie Diao added that the company is confident in the Rhode Island market. He believes it will be material from a North American iGaming revenue generation perspective.
Tropicana Las Vegas casino closure to make way for a new stadium
Casinos & Resorts revenue rose 4.1% annually inclusive of the contribution from the Chicago Temporary Casino and the winding down of the Tropicana Las Vegas.
Bally’s said it is preparing to demolish the Tropicana, which closed in April. It will be demolished in October, allowing the Las Vegas A’s to begin their stadium development for Oakland Athletics.
Bally’s president George Papanier explained:
“Tropicana Las Vegas officially closed on April 2, and we are currently preparing the building for demolition later this year. This will allow the Las Vegas A’s to begin their stadium development and keep pace with their plans to play at their new Las Vegas stadium beginning with the 2028 Major League Baseball season. While working with the team, we continue to evaluate our development options for the remainder of the Tropicana site.”
Bally’s future for North America Interactive lies in strength of its online casinos
In the earnings call, Bally’s Chief Financial Officer Marcus Glover said he believes the company’s future for North America Interactive lies in the strength of its online casino performance:
“So far, we’re in New Jersey, Pennsylvania, now, recently Rhode Island, and we’re seeing some great promise in Rhode Island. But we are very, very prudent with how we’re approaching our positioning with OSB from a reinvestment standpoint.”
Glover said Bally’s financial results for Q1 2024 demonstrate the strength of the company’s diversified business segments. He concluded: “Bally’s operating teams remain focused on reducing expenses and enhancing operating efficiency. We are evaluating all business areas and implementing initiatives to streamline or centralize operations where it makes sense.
Overall, we made progress on several of these initiatives in the first quarter and are looking forward to the promising opportunities that lie ahead.”
As Reeves added, Bally’s is focusing its investment in the iGaming states, or what might become iGaming in the future. The company’s leadership hasn’t made any assumptions about additional states rolling out and is making sure its cost base aligns with that.
