Bally’s accepts $4.6 billion buyout from Standard General

Rhode Island-based Bally’s Corp. has agreed to a buyout offer from Standard General LP, its largest shareholder, for $4.6 billion.

The New York-based hedge fund, managed by Bally’s Chairman Soo Kim, will merge Bally’s with regional gaming operator The Queen Casino & Entertainment Inc., also part of Standard General's portfolio.

The buyout includes the now-closed Tropicana Las Vegas, which ceased operations on April 2. The future of the Tropicana site is uncertain, though a demolition of existing structures is planned for early October. Bally’s and Gaming & Leisure Properties Inc. (GLPI), the landowner, intend to develop a new casino-hotel on the 35-acre site, along with a new baseball stadium for the Oakland Athletics.

Bally’s shareholders are offered $18.25 per share, a 71% premium over the 30-day average price, with an option to keep their investment in the publicly traded company. Standard General will provide $500 million to facilitate the deal.

“The transaction provides Bally’s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline,” Soo Kim, Managing Partner of Standard General, said.

"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."

“Our team is well positioned to continue to execute on our initiatives to drive growth across all our segments including in our International Interactive business, North America Interactive and our Casinos & Resorts segments, while proceeding with our development pipeline, including construction of our permanent casino resort in Chicago, for which we recently announced a comprehensive financing plan,” Robeson Reeves, Bally’s Chief Executive Officer, said.

"The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio. With QC&E’s development pipeline recently completed or already well underway, we see a path toward additional revenue and EBITDAR growth and value accretion as those projects are completed in 2025."

The combined entity will manage 19 gaming facilities in 11 states, including properties in Illinois, Iowa, Louisiana, and Rhode Island. The deal, expected to close in the first half of 2025, is the third offer from Standard General to Bally’s in three years. Previous offers were rejected, including one at $38 per share in January 2022.

Earlier this month, Bally’s secured a $2.07 billion deal with GLPI, including $940 million for its Chicago project. The company also sold and leased back its Kansas City and Shreveport casinos for $395 million and agreed to a potential future deal for its Rhode Island casino.

The buyout and recent financial maneuvers position Bally's for expansion, addressing previous funding gaps and criticism over its Chicago project, now slated to open in fall 2026.