Bally's (NYSE: BALY) Bally Bet division, which includes iGaming and a portfolio of online sports betting assets, may consider selling its sports betting division.
The rumor was recently published on the Offshore Gaming Association (OSGA) blog.Bally's recently announced plans to revamp its online sports betting business through a new technology partnership with Kambi, but may have other motives, it said.The company has struggled to capture sufficient market share in states that offer mobile sports betting.
An unidentified source told the magazine that Bally's is considering a sale to extract some value from its sports betting division for investors, rather than simply disappearing like FOX Bet. It is said that there is a possibility to do so.
Bally'sがスポーツベッティング製品に長期的な計画を持っているとしたら、かなり驚きだ。間違いなく、同社はその知名度がトップを取ると信じていた。しかし、同社はランドベースのカジノ商品とホテルで知られており、スポーツ・ベッティングでは知られていない」と情報筋はOSGAに語った。Bally Bet operates in just six states: Arizona, Colorado, Indiana, Iowa, New York, Virginia, and Ontario, Canada.That's the 6 states and a small percentage of Washington DC where sports betting is legal.
Land-based casinos that don't contribute to Bally's
Based in Rhode Island, Bally's is a regional casino operator with facilities in 10 states.However, these facilities have not helped to improve the status of sports betting.
The company operates eponymous casino resorts on the Atlantic City Boardwalk and Lake Tahoe, and at Tropicana on the Las Vegas Strip.
However, the nation's largest sports betting markets, Nevada and New Jersey, do not offer mobile sports betting.Similarly, Bally's operates four casinos in Colorado.But its sports betting market share in the state is negligible.
Compounding Bally's woes on the digital gaming front, the company's North American interactive division posted a wider loss in the second quarter.
“BALY has announced a shift to a variable cost technology strategy and this earnings season will see the worsening losses in the , could be disappointing for investors and impact expectations for when it will turn profitable," Stifel analyst Jeffrey Stantial wrote in a recent report.
What's next for Bally's in the sports betting space
Bally's has options for the future of its online sports betting sector, including committing the necessary capital to grow its market share.But given that regulated sports betting in the US is dominated by two companies, FanDuel and DraftKings, it won't come cheap, and the effort may not pay off.
Similarly, as OSUGA points out, Bally's could consider business-to-business players in the iGaming space.Another idea is to license Bally's well-known brands to internet casinos, allowing partners to use their favorite sports betting brands.
As for the sale of its online sports betting division, Bally's could find an interested buyer, as it has licenses in states that limit the number of permits, such as Arizona and New York.How much prospective buyers are willing to pay for it is another matter.
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