Press release·04/07/2025 03:55:01

Executive Summary

During 2024, Bally’s continued to expand its business by pursuing new gaming opportunities and strategically allocating capital to growth initiatives and existing operations. The company secured financing for its flagship Bally’s Chicago casino, advanced plans to redevelop the Tropicana Las Vegas site, and expanded its iGaming presence by launching new apps and enhancing its reach. These steps have positioned Bally’s as a prominent, vertically integrated iGaming company with physical casinos and online gaming solutions.

Financial Performance Overview

Bally’s total revenue remained relatively flat in 2024 compared to 2023, at around $2.45 billion. However, the company experienced some shifts in its revenue mix, with increased revenue from its Casinos & Resorts segment and North America Interactive segment, offset by decreased revenue in its International Interactive segment.

Gaming and non-gaming expenses increased by $18 million, primarily due to the inclusion of expenses from the new Bally’s Chicago temporary casino, partially offset by decreased expenses from the closure of the Tropicana Las Vegas property. General and administrative expenses decreased by $70.5 million, mainly due to lower acquisition and integration costs, as well as decreased severance and employee-related restructuring costs compared to the prior year.

Bally’s recorded significant impairment charges in 2024 totaling $248.9 million, including charges related to intangible assets, goodwill, and other long-lived assets in its International Interactive segment, as well as impairment charges on gaming licenses in its Casinos & Resorts segment. These impairment charges, along with a net loss on sale-leaseback transactions, contributed to an overall operating loss of $258.3 million for the year, compared to operating income of $104 million in 2023.

Net loss for the year was $567.8 million, or $11.71 per diluted share, compared to a net loss of $187.5 million, or $3.51 per diluted share, in the prior year. The increase in net loss was primarily driven by the higher impairment charges and net loss on sale-leaseback transactions.

Segment Performance

Bally’s has three reportable segments: Casinos & Resorts, International Interactive, and North America Interactive.

Casinos & Resorts This segment’s revenue increased 6% to $1.01 billion, mainly due to the inclusion of the Bally’s Chicago temporary casino, which contributed an incremental $96.5 million, partially offset by the closure of the Tropicana Las Vegas property, which decreased revenue by $77.8 million. Adjusted EBITDAR for this segment decreased 13.6% to $370.5 million, primarily due to weather impacts across multiple properties and the Tropicana Las Vegas closure.

International Interactive Revenue in this segment decreased 6.2% to $909.5 million, primarily due to the sale of the Carved-Out Business, which was partially offset by increased licensing revenue of $6.9 million and growth in the UK market. Adjusted EBITDAR decreased 2.1% to $336.5 million, mainly due to softness in non-UK operations.

North America Interactive Revenue in this segment increased 77.2% to $177.9 million, driven by expanded operating jurisdictions and stronger performance in iGaming and sportsbook. Adjusted EBITDAR loss decreased from $55.7 million to $40.2 million, reflecting the improved operating performance.

Liquidity and Capital Resources

Bally’s primary sources of liquidity and capital resources include cash on hand, cash flow from operations, borrowings under its Revolving Credit Facility, and proceeds from the issuance of debt and equity securities. The company believes that existing cash balances, operating cash flows, and availability under its Revolving Credit Facility will be sufficient to meet its funding needs for operating, capital expenditure, and debt service purposes.

In 2024, Bally’s completed several significant transactions to support its growth and development plans:

• Secured a $940 million financing arrangement with GLPI for the construction of the Bally’s Chicago permanent casino.
• Completed the sale-leaseback of the Bally’s Kansas City and Bally’s Shreveport properties to GLPI for $394.8 million.
• Entered into a binding term sheet with GLPI to provide up to $940 million in construction financing for the Bally’s Chicago project.

Bally’s capital expenditures were $199.8 million in 2024, down from $311.5 million in 2023, as the company continued to focus on its Bally’s Chicago development and other maintenance projects across its portfolio.

Outlook and Key Risks

Bally’s business is subject to various macroeconomic and other factors that can impact its performance, including global economic challenges, public health crises, geopolitical conflicts, inflation, rising interest rates, and supply chain disruptions. These factors can negatively affect discretionary consumer spending and result in reduced visitation and spending at Bally’s properties.

Additionally, Bally’s faces risks related to its ability to successfully execute its growth and development plans, effectively integrate acquisitions, and maintain its competitive position in the rapidly evolving gaming and iGaming industries. The company’s financial performance is also dependent on its ability to effectively manage costs, particularly labor costs, in periods of sustained inflation.

Overall, Bally’s continues to position itself as a leading, vertically integrated gaming and iGaming company, with a focus on expanding its physical casino footprint and online gaming presence. However, the company’s financial results in 2024 were impacted by significant impairment charges and the net loss on sale-leaseback transactions, resulting in an overall net loss for the year. Going forward, Bally’s will need to navigate the challenging macroeconomic environment while executing on its strategic initiatives to drive long-term growth and profitability.