Rhode Island-based casino and gaming operator Bally’s Corporation is to be acquired by its largest shareholder, hedge fund Standard General, in a deal valued at $4.6bn, including debt, according to a report by the Business Journals.
Under the terms of the deal with Standard General, which is led by Bally’s chairman Soo Kim, shareholders will receive $18.25 per share, which represents a 71% premium over the 30-day average stock price from 8 March, the last trading day before Standard General’s made its previous offer of $15.
As part of the acquisition, Bally’s will merge with Queen Casino and Entertainment, a regional operator also owned by Standard General. QC&E operates four casinos in Illinois, Iowa, and Louisiana and is the largest shareholder in Intralot, a global lottery management and services company. The combined entity will operate 19 gaming facilities across 11 states and will own various digital gaming and sports betting products.
The transaction is expected to close in H1 2025. Standard General, which currently owns about 23% of Bally’s stock, will merge its operations with Bally’s, enhancing the company’s growth potential and market reach. Bally’s properties are primarily owned by Gaming and Leisure Properties under a master lease agreement.
Standard General initially attempted to acquire Bally’s in 2022 with a $38 per share offer. After Bally’s stock declined, the hedge fund made a $15 per share offer in March 2024. Bally’s then formed a committee and hired advisors to evaluate the potential M&A, ultimately recommending the deal at $18.25 per share.
In 2023, Bally’s reported $527m in adjusted earnings but suffered a $122m operating loss. Despite these challenges, the company is advancing real estate projects in Chicago and Las Vegas, backed by newly acquired financing.
Kim, managing partner of Standard General, said the buyout “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.”
Shareholders will have the option to retain their shares instead of taking cash with major shareholders, including Sinclair Broadcast Group and Noel Hayden, have already opted to do so.
