Bally’s Completes $4.6B Buyout, Eyes New Strip Project
Deal News | Feb 08, 2025 | EIN
Bally's Corp., a Rhode Island-based casino operator, has completed a $4.6 billion buyout backed by its largest shareholder, Standard General LP, a New York-based hedge fund. This transaction involved a merger with The Queen Casino & Entertainment Inc., enabling Bally’s to expand its portfolio to 19 casinos across 11 U.S. states, a golf course, and a horse racetrack, alongside operations in sports betting and online gaming. The merger was financed with $500 million in notes from Apollo, Bally's free cash, and other funding sources. A notable 22.8 million shares of Bally’s stock were purchased at a 71% premium, although 17.9 million shares remain retained by investors. The merger signals significant growth potential with new projects, including a casino-hotel and a potential Major League Baseball stadium on the former Tropicana site in Las Vegas.
Sectors
- Gaming and Casinos
- Private Equity and Hedge Funds
- Real Estate Development
Geography
- United States – The transaction and future developments revolve around the United States, with casino properties and potential projects located within US states, including significant developments planned for the Las Vegas Strip.
- Las Vegas, Nevada – The focus on the Las Vegas Strip, including planned new casino and stadium projects, anchors the geographical significance of this area.
Industry
- Gaming and Casinos – The transaction involves the merger and acquisition of casino properties, which are a key focus of the gaming industry.
- Private Equity and Hedge Funds – Standard General LP, a hedge fund, is the key player in acquiring Bally’s, highlighting the role of private equity and hedge funds in M&A activities.
- Real Estate Development – The potential development of new facilities, including a casino-hotel and a Major League Baseball stadium in Las Vegas, ties into real estate development.
Financials
- $4.6 billion – The total value of the buyout by Standard General LP.
- $18.25 per share – The purchase price per share, representing a 71% premium over Bally’s 30-day average share price.
- $500 million – Value of senior secured notes issued to finance the merger.
- $1.75 billion – Estimated cost of the planned 33,000-fan capacity ballpark for the Athletics.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Bally's Corp. | Target | Company | A Rhode Island-based casino operator involved in the merger and buyout. |
| Standard General LP | Bidding Company | Company | A New York-based hedge fund that acquired Bally’s Corp. |
| The Queen Casino & Entertainment Inc. | Selling Company | Company | Merged with Bally’s Corp. as part of the buyout. |
| Apollo | Financial Advisor/Funder | Company | Provided $500 million in senior secured notes to finance the merger. |
| Soo Kim | Chairman | Person | Chairman of Bally’s Corp and manager involved in the hedge fund's acquisition. |
| Gaming & Leisure Properties Inc. | Land Owner | Company | Owns land where future casino and stadium developments are planned. |
| Oakland Athletics | Other | Company | Professional baseball team applying for a permit to construct a stadium on Bally's property. |