Bally's-Gamesys merger gets first approval from Nevada regulators

Bally’s Corp. has found unanimous approval of its acquisition of British online software development and gaming business Gamesys Group in a Nevada Gaming Control Board meeting Wednesday.

This brings Bally’s a step closer to expanding its omnichannel presence, and now the board’s recommendation will go to the Nevada Gaming Commission on October 28, reports Las Vegas Review-Journal. It was part of Bally’s request to amend its registration as a gaming company in the state.

In a hearing in Carson City, Bally’s Chief Financial Officer, Steve Capp, said Bally’s intends to use the Gamesys platform for online operations, including sports betting, iCasino play, poker, bingo, daily fantasy sports and free-to-play games.

The Gamesys acquisition is set to become an integral piece of the structure of Bally’s. The Rhode Island-based company already operates 14 casinos and has sportsbooks throughout the U.S. under its Bet.Works subsidiary and daily fantasy sports through Monkey Knife Fight. In Nevada, Bally's has agreed to purchase the Tropicana Las Vegas casino from Gaming and Leisure Properties, Inc. back in April. The transaction is expected to close in early 2022.

Through a partnership with Sinclair Broadcast Group, Bally’s also has 19 regional sports networks. Using Gamesys as a business-to-business and business-to-consumer operation, the company may commercialize the platform for possible use by other operators, further explained Capp, reports the aforementioned news source.

Capp told the board that Bally’s is looking to “welcome revenue from many streams.” Board member Phil Katsaros said Bally’s now has “everything but slot manufacturing.”

Bally’s completed its $2.7 billion merger with Gamesys on October 1. The entire issued and to be issued ordinary share capital of Gamesys is now owned by Bally's. Gamesys shares became de-listed on October 4, and the new Bally's shares were listed on the same day.

The boards of Gamesys and Bally’s first announced that they had agreed to the terms of a recommended combination on April 13. Under said terms, Bally’s was set to pay $25.77 per Gamesys share. The deal was approved by shareholders in June.

Former Gamesys CEO Lee Fenton will now serve as Bally’s CEO. Former Bally’s CEO George Papanier will assume the role of president of retail, for Bally’s land-based casino business, and former Gamesys Chief Operating Officer Robeson Reeves will assume the role of president of interactive. Fenton, Reeves and Jim Ryan, former Gamesys non-executive director, have been appointed to serve on Bally’s board of directors.

The combined entity is expected to be well-positioned to capitalize on the full range of opportunities available both in the US and abroad, stated Bally’s in a September acquisition update.

“If you look at where we put our chips,” Bally’s new CEO Lee Fenton told CNBC in a recent interview, “it’s on those media partnerships, it’s on the investment in our technology, and I think we’ll approach customer acquisition in a very different way, really driving omnichannel.”