Bally’s Corp. Buyout Announcement and Launch in Maryland Sports Betting

By Keith Stein,
Editor at online-gambling.com

Keith Stein Editor at online-gambling.com

As a self-starter and goal-driven, Keith took up freelance writing in 1994 and within a few years moved into a full-time journalist position in 1997 in Washington, D.C. In recent years, he has published over 100 articles that focus on gambling news, reviews, and tips and tricks to give the player a slight advantage.

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Last updated: July 27, 2024

The Maryland Lottery and Gaming Control Commission (MLGCC) announced Monday they have issued a mobile sports wagering license to Bally’s Interactive Maryland, LLC. The license allows the company to launch its Bally Bet online sportsbook in the state.

“On July 25, Bally’s successfully completed a controlled demonstration of its mobile wagering platform (Bally Bet Sportsbook),” the MLGCC said in a press statement. “Customers participated in live wagering as Maryland Lottery and Gaming staff ensured that the sportsbook complied with all required procedures and that its systems functioned properly.”

Maryland’s sports betting market has been a revolving door recently with sportsbooks either joining or leaving the state.

A retail sportsbook operated by BetFred Sports in Frederick, Md., closed in June and will be followed by the company pulling the plug on their online service on July 31. Las Vegas-based Superbook closed its online sportsbook on July 19 in Maryland and other states.

In the meantime, Maryland issued a mobile sports wagering license to Veterans Services Corp. (VSC) and its operator partner Bee-Fee LLC on July 1. VSC and Bee-Fee completed a controlled demonstration of their mobile wagering app (LetsBetMD) and website (letsbetmd.com) in May.

Florida-based microbetting platform Betr was approved for a Maryland sports betting license in June. The company still needs to perform a controlled demonstration of its mobile app before taking bets from customers.

With the recent launch of Bally Bet, Maryland has 13 mobile sportsbooks and 12 retail sportsbook facilities currently operating.

Through the first 11 months of Fiscal Year 2024 (July 2023 through May 2024), state taxes collected from sports wagering contributed $54,582,952 to the Blueprint for Maryland’s Future Fund, which supports public education programs.

Bally’s Corp./Standard General Merger

The launch of Bally Bet in Maryland followed an announcement from the company’s headquarters on July 25 stating the company had entered into a definitive merger agreement with their largest common stockholder Standard General L.P.

Bally’s said Standard General will acquire outstanding shares of the company at $18.25 per share. The transaction values Bally’s at approximately $4.6 billion in enterprise value. Standard General initially proposed a cash acquisition at $15.00 per share.

As a result of the merger, Bally’s will combine with The Queen Casino & Entertainment Inc. (QC&E), a regional casino operator majority-owned by funds managed by Standard General. QC&E is a regional gaming, hospitality, and entertainment company that currently owns and operates four casinos across three states: DraftKings at Casino Queen in East St. Louis, Ill., the Queen Marquette in Marquette, Iowa, and the Queen Baton Rouge and the Belle of Baton Rouge in Baton Rouge, La.

Adding Bally’s 15 casino properties the merger will expand the company’s casino & resorts segment to 19 gaming, entertainment, and hospitality facilities across 11 U.S. states.

Merger Concerns Raised

The Bally’s/Standard General merger did raise concerns with one shareholders’ rights firm in New York.

In a press release on Monday, Julie & Hollman LLP said they are investigating the proposed $18.25 per share buyout of Bally’s Corp. by Standard General.

The firm said they are concerned about “the inadequate deal price. The $18.25 per share deal price is less than the recent Bally’s recent trading prices, and the company may be better suited by pursuing alternative transactions.” The firm is also concerned about conflicts of interest.

“Standard General is squeezing out public shareholders while retaining for itself the company’s massive potential,” Julie & Hollman said. “Indeed, certain investors have expressed that Standard General is taking advantage of short-term market conditions to buy the company at a steep discount to its intrinsic value.”