Bally's Preparing for Merger with Standard General
Date: 2024-09-17 Author: Robert Beloved Categories: CASINO
The deal, valued at $18.25 per share, received tacit approval from the Federal Trade Commission (FTC) as the regulatory waiting period expired without any objections.
Merger Faces Several Challenges
The proposed acquisition involves Bally's merging with Queen Casino & Entertainment Inc., a regional gaming operator. This strategic combination would significantly expand Bally's presence in the U.S., opening up new growth opportunities for the company. Standard General expects to close the deal in the first half of 2025, marking a major milestone in Bally's growth story.
While federal regulators have not expressed concerns about the deal, Standard General's next challenge is to secure approval from state regulators in the states where Bally's operates land-based gambling operations. The company currently operates properties in nine U.S. states, and has a significant presence abroad, cementing its position among the world's leading gambling operators.
Unlike other major deals in the industry, which often involve asset sales or job cuts to meet regulatory requirements, the Bally's-Standard General merger does not raise similar concerns. One reason for this is that Standard General is a hedge fund, not another market participant.
Bally's will strengthen its position in the market
The FTC's approval of the deal was an important milestone on the road to completion. State approval is not expected to pose significant hurdles, as the merger should not affect the competitive balance in local markets. While the approval process in various states may take some time, both companies are committed to completing the transaction as soon as possible.
Bally's has not yet commented on the details of the upcoming merger. CEO Robeson Reeves emphasized that the details of the deal will not be discussed publicly. However, the company's financial position remains stable, with revenues up 2.5% year-over-year in the second quarter, reaching $621.7 million.
The successful completion of this important merger will allow Bally's to expand its U.S. presence to 19 locations in 11 states. This will strengthen the company's portfolio and allow it to continue to provide the best gaming and entertainment experiences to customers across the country while remaining a leader in industry innovation.
