In an impactful development in the corporate landscape of the gaming industry, Bally’s Corporation has announced that its stockholders, during a special meeting held on November 19, 2024, overwhelmingly approved the previously disclosed definitive merger agreement with The Queen Casino & Entertainment Inc. This agreement signifies a critical consolidation within the industry, with The Queen Casino being a significant portfolio company largely owned by Bally’s biggest shareholder, Standard General L.P.

Executive compensation and shareholder confidence:

The endorsement by the shareholders not only included the primary merger agreement but also a non-binding advisory vote on the compensation packages that may become payable to Bally’s executive officers in the wake of the merger. This vote is a testament to the trust the shareholders place in the executive leadership, paving the way for a smooth transition and integration post-merger.

In a detailed discussion during the meeting, stockholders voted to maintain their shares in the active registry post-merger. This decision will see their shares assigned a new CUSIP number and temporarily trade on the New York Stock Exchange under the ticker symbol “BALY.T” up to the point of the merger’s completion. Bally’s has communicated its flexibility in opening additional election periods for stockholders to decide on their share status prior to the final merger enforcement. These subsequent periods and their specifics will be thoroughly detailed in upcoming filings with the Securities and Exchange Commission.

The completion of this merger is projected for the first half of 2025, awaiting the fulfillment of required regulatory endorsements and other conventional closing prerequisites. Once these conditions are met, it is anticipated that the Rolling Company Shares will revert to the original “BALY” ticker symbol, maintaining their registration with the SEC and continued trading presence on the NYSE or another eligible securities exchange in the U.S.

Strategic growth and revenue considerations:

This strategic merger is part of Bally’s broader growth and development strategy, which includes significant projects such as a $940 million casino in Chicago and the extensive redevelopment of its Las Vegas property. Despite a slight contraction in overall revenue, reporting $630 million in the third quarter of 2024, a marginal 0.4% decline from the previous year, the company’s North American Interactive sector has shown promising growth. This sector’s performance is critical as Bally’s aims to expand its footprint in pivotal U.S. markets while simultaneously optimizing its international operations to boost overall profitability and market reach.

The company noted in a press release that a comprehensive final report detailing the outcomes and resolutions of the Special Meeting will be compiled and made available through a Form 8-K filing with the SEC, ensuring transparency and ongoing shareholder engagement in the company’s future endeavors.