Standard General, the hedge fund led by Bally’s chairman Soo Kim, has succeeded in buying out the casino operator after multiple attempts. The deal, announced on Thursday (25 July), represents a $4.6bn valuation for the company. 
In a release, Bally’s said that Standard General will acquire its outstanding shares for $18.25 per share. The figure represents a 71% premium over the 30-day volume weighted average price per share as of 8 March. That was the last trading day prior to the public announcement of its previous offer of $15 per share.
The hedge fund is also extending $500m to help facilitate the deal.
Soo Kim, Bally’s chairman and managing partner of Standard General, said in a statement 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.”
Bally’s CEO Robeson Reeves added that the company is “well positioned to continue to execute on our initiatives to drive growth”. He added that this includes both its interactive and land-based businesses.
Truist’s Barry Jonas doesn’t agree – he sent out an analyst note following the news downgrading Bally’s stock to “hold”. Bally’s stock was trading at a high of $70 in March 2021 before entering a downward spiral. Jonas attributes the fall to “an unsuccessful NA Interactive strategy, leadership changes, high leverage (6.3x net debt on 2025E EBITDAR)” and other issues.
The company is leveraged in multiple markets, including a massive retail casino resort deal in Chicago, the new Major League Baseball A’s casino site in Las Vegas and building out a new brick-and-mortar casino in Pennsylvania.
Bally’s to merge with QC&E, expands portfolio to 19 casinos
As part of the buyout, Bally’s will merge with The Queen Casino and Entertainment (QC&E), a regional operator also owned by Standard General. QC&E operates four casinos in three states. Its portfolio includes DraftKings at Casino Queen in East St Louis, Illinois, the Queen Marquette in Marquette, Iowa, along with the Queen Baton Rouge and the Belle of Baton Rouge, both in Louisiana.
Bally’s already operates a casino in Shreveport through a recent deal with real estate investment trust Gaming and Leisure Properties (GLPI). Under the deal with Standard General, the company will now own and/or operate three of the 20 licensed casinos in the state.
Adding Bally’s holdings, the combined company will operate 19 gaming facilities in 11 states. It will remain publicly traded. Shareholders will have the option to retain their holdings through a rollover election.
Two shareholders, Sinclair Broadcast Group and Noel Hayden, already made rollover elections. That means at least 47% of Bally’s outstanding shares will be rolled over to the new company.
The deal is expected to close in the first half of 2025. Bally’s said Q2 results would be released on or before 31 July but it will not comment on the deal on its investors call later this month.
Buyout successful on third attempt
The accepted offer was the third extended by Standard General to Bally’s in the last three years. The first offer was for $38 per share in January 2022. Bally’s rejected that price shortly after. Then-CEO Lee Fenton asserted the company had “substantial opportunities before it”.
The company’s stock then declined steadily over the following two years, resulting in the discounted offer in March. Bally’s formed a special committee to consider that proposal. Ultimately, the committee decided now was the time to accept the buyout.
Jaymin Patel, chair of the committee, said Thursday that “it was determined that the cash consideration from Standard General delivers a meaningful and immediate value to stockholders”.
Bally’s moving forward with Chicago, Las Vegas developments
Overall, it’s been a very busy month for Bally’s. On 12 July, the company announced a wide-ranging deal with GLPI with a total of $2.07bn in funding. Of that, $940m will go toward construction costs of Bally’s Chicago casino project. GLPI acquired the project’s real estate for $250m and Bally’s will lease the property starting at $20m per year.
The operator also agreed to sell and lease back its Bally’s Kansas City and Bally’s Shreveport casinos for $395m. Those properties will fetch annual rent starting at $32.2 million. And GLPI will have the right to buy and lease back the Bally’s Twin River Lincoln Casino in Rhode Island for $735m by the end of 2026. That would carry annual rent starting at $58.8m.
With the Chicago funding in place, Bally’s has now addressed the biggest obstacle in its immediate path. Company officials previously indicated it had a funding gap of $800m for the project, which drew heavy criticism. Chicago Mayor Brandon Johnson expressed skepticism in Bally’s ability to complete the deal at one point. But now the project looks to be back on track to open in the fall of 2026.
Tropicana site also sees progress
In addition to Chicago, Bally’s is also moving forward with its demolition of the Tropicana Las Vegas.
On 11 July, Bally’s applied for a permit with Clark County to implode the longstanding property. According to the Las Vegas Review-Journal, the application sets a tentative window between 30 September and 8 October. GLPI owns the 35-acre plot the Tropicana sits on and Bally’s purchased the operations of the casino in 2021 for $148m.
Once the building is demolished, the Oakland A’s will begin construction on a $1.5bn stadium to be completed by the 2028 MLB season. The stadium will encompass nine of the site’s 35 acres. Bally’s relinquished the casino in exchange for the rights to build a new casino-resort on the remaining acreage.
By the time the stadium is complete, Bally’s Chicago will have been open for approximately two years. If returns are satisfactory, further collaboration with GLPI could be possible. The Bally’s temporary casino at Medinah Temple has posted $62.7m in adjusted gross receipts so far this year, which is the fourth-highest total in the state over that span.
Bally’s also has a major commitment in New York, where it is among 11 bidders for three downstate casino licences.
Bally’s launched its Bally Bet digital platform in New York in July 2022. Since then, it signed a 20-year agreement with the city of New York to take over the lease of the former Trump Golf Links in the Bronx. The company is on the hook for $60m for the lease. As part of its plan, Bally’s plans to dedicate 17 of the 192.5 acres to a casino project.
New York officials are set to select the three licensees in 2025.
