Bally’s Corporation hailed a strong start to 2024 as it reported a 3.3% increase in revenue to $618.5 million, led by growth across its Casino and Resorts and North America Interactive segments.
In an earnings call following the announcement, Bally’s representatives discussed the results as well as provided updates on other aspects of the business.
Retail performs well despite challenges
Bally’s Casino and Resorts segment contributed $342.3 million in revenue in Q1, up 4.1% year-on-year.
The operator noted on its earnings call that growth in the department came despite adverse weather conditions in January that impacted results.
Its Twin River location was also impacted by construction work on Providence Bridge which led to lane closures and disruption to traffic, impacting access to the casino.
Construction plans in Las Vegas and Chicago
During the earnings call Bally’s CEO Robeson Reeves confirmed that Tropicana Las Vegas closed on April 2 and the property is expected to be demolished in October to make way for the construction of a new stadium for the MLB franchise Oakland Athletics.
Despite closing down the Tropicana, Reeves didn’t rule out the possibility of Bally’s remaining in that location. He said the operator is considering its options for the “highly valuable land” next to the stadium.
An update was also given on Bally’s construction plans in Chicago, where it is currently operating a temporary site ahead of building a permanent facility.
“We are on track to gain control of the North River campus in July and will commence site preparation and demolition shortly thereafter. We remain confident that the property will be operational by September 2026, as all timelines are currently on schedule,” said Bally’s President George Papanier.
UK and U.S. iGaming performs well
The U.K. iGaming market shone for Bally’s in Q1 despite International Interactive revenue slipping 4.4% year-on-year to $234.7 million.
Bally’s CFO Marcus Glover told investors that its U.K. operations revenue grew 12% year-on-year in U.S. dollars and 7% in constant currency. Glover described the U.K. business as the “crown jewel” within Bally’s international segments and explained that its results had driven adjusted EBITDAR to $84 million for International Interactive, up 4% year-on-year.
On the other side of the Atlantic Bally’s North American segment exhibited the greatest growth within the company in Q1, with revenue growing 70% year-on-year to $41.5 million.
In March Bally’s launched in Rhode Island as the state’s sole iGaming operator. According to Bally’s, it generated $1.2 million in gross gaming revenue up until the end of March.
“Our iGaming operations in New Jersey and Pennsylvania continue to gain market share,” said Reeves. “We also successfully launched iGaming in Rhode Island in early March. IGaming revenue in Rhode Island have ramped nicely through April in accordance with expectations. We believe this momentum will continue to build through the balance of 2024.”
Bally’s look to online sports betting to funnel iGaming customers
During the earnings call, Reeves reiterated Bally’s plan to use online sports betting as a “funnel for iGaming growth”.
Reeves confirmed that it would be focusing its online sports betting investment in iGaming states. Bally Bet has not launched in any of the newest sports betting states like Kentucky or North Carolina but does intend to launch in Massachusetts next month.
It is also looking to use a similar strategy in the U.K. as it looks to build on the momentum of a positive Q1 performance.
“We are actively exploring additional ways to expand our presence in the UK and will soon launch online sports betting to further strengthen our market-leading position and serve as a player acquisition funnel,” said Reeves.
Reeves also hailed the successful transition of Bally’s onto the Kambi and White Hat platforms.
“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 results and our continued ability to gain market share clearly demonstrate that our players are recognizing the benefits of this technological transition,” added Reeves.
