Bally’s Corporation has officially completed its $4.6 billion acquisition by Standard General LP, its largest shareholder. As part of the agreement, Bally’s merged with The Queen Casino & Entertainment Inc., a regional casino operator primarily owned by Standard General. This transaction adds four new domestic casino properties to Bally’s growing portfolio, expanding its presence in the U.S. gambling sector.

Under the terms of the merger, Bally’s announced that Queen Casino & Entertainment shareholders received a total of 30.5 million Bally’s shares, while 22.8 million of Bally’s outstanding shares were purchased for $18.25 per share. The cash portion of the deal was financed through the issuance of $500 million in senior secured notes due in 2028, with funding provided by Apollo-managed funds. Bally’s also used its existing cash reserves to complete the transaction.

A significant portion of Bally’s stockholders, totaling 17.9 million shares, opted to retain their shares through a rollover election. This decision resulted in 48.4 million outstanding shares post-merger. Additionally, warrants remain in place for the potential purchase of up to 11.6 million Bally’s shares.

During the acquisition period, Bally’s shares temporarily traded under the ticker “BALY.T” on the New York Stock Exchange. However, as of February 10, 2025, the stock has reverted to its original “BALY” ticker symbol.

Expansion and Future Developments

With the completion of this deal, Bally’s now operates 19 casinos across 11 U.S. states, along with a golf course in New York and a horse racetrack in Colorado. The company holds online sports betting licenses in 13 North American jurisdictions and continues to expand its interactive gaming division through Bally Bet and Bally Casino. These platforms currently serve four states and are positioned for further growth in the competitive iCasino and sports betting markets.

Bally’s also has plans to redevelop the former Tropicana site on the Las Vegas Strip. The company, in partnership with Gaming & Leisure Properties Inc., intends to construct a new casino-hotel on the 35-acre property at the intersection of Las Vegas Boulevard and Tropicana Avenue. Additionally, they have allocated up to nine acres of the site for a potential Major League Baseball stadium for the Athletics. The team has already applied for a land use permit for a proposed $1.75 billion, 33,000-seat stadium, with construction expected to begin between April and June.

Shareholder Response and Market Impact

The acquisition was overwhelmingly approved by Bally’s shareholders, with 98.9% voting in favor of the deal. However, it previously faced opposition, particularly from K&F Growth Capital managing partners Dan Fetters and Edward King. In April 2024, they criticized the transaction as being “woefully undervalued” and raised concerns about Bally’s strategic direction, citing development risks, underperforming casino properties, and financial instability.

Despite these concerns, Bally’s Chairman and Standard General’s managing partner Soo Kim emphasized that the acquisition provides Bally’s shareholders with an opportunity to either secure a cash premium or continue investing in the company’s future expansion. He stated, “The addition of the complementary QC&E assets builds upon the Company’s attractive growth profile. We look forward to working with the Board of Directors and the Company’s senior management team as they continue to execute on their business plan.”