Bally’s Corporation has agreed the important thing phrases of the potential acquisition of UK on-line playing operator Gamesys, the US on line casino operator introduced Wednesday.
Under the phrases of the deal, Bally’s would pay 1,850 pence per every Gamesys share in money. That represents a 13% premium from the latter firm’s closing worth on Tuesday and values it at £2.02 billion (approx. $2.7 billion).
Bally’s approached Gamesys with an preliminary proposal in late January. The Rhode Island-headquartered on line casino agency stated there’s no assure that it’s going to categorical a agency intention to bid for the UK firm and that any formal provide shall be topic to shareholder and regulatory approval.
It needs to be famous that Gamesys founders Noel Hayden, Andrew Dixon, and Robin Tombs in addition to main investor HG Vora have indicated that they may again a tie-up.
If Bally’s decides to purchase Gamesys, that would be the newest marriage between a US on line casino operator and a UK firm with sports activities betting and on-line playing expertise. In an identical transfer, Caesars Entertainment, Inc. is ready to shut the acquisition of British bookmaker William Hill subsequent month.
In addition, Caesars rival MGM Resorts International tabled an $11 billion provide for Entain earlier this yr, however the latter rebuffed the bid, arguing that it considerably undervalued it.
Cracking the US Market
The objective of all the current transatlantic dealmaking is for firms with land-based on line casino traditions to faucet into the fast-growing US sports activities betting and on-line gaming area. Partnerships with operators with expertise in offering digital playing companies might considerably facilitate their entry into that nascent however extremely profitable market.
Both iGaming and sports activities betting have exploded throughout the pandemic and have the possibility to broaden even additional within the US the place the Supreme Court licensed athletic playing in 2018.
Gamesys creates on-line on line casino and bingo video games and manages the Virgin Casino and Jackpotjoy on-line gaming manufacturers. The firm works with proprietary expertise, which Bally’s shall be ready to profit from, if it chooses to purchase it and whether it is given the nod to accomplish that.
Bally’s Chairman Soo Kim stated Wednesday that “Gamesys’s proven technology platform alongside its highly respected and experienced management team, combined with the US market access that Bally’s provides, should allow the combined group to capitalize on the significant growth opportunities in the US sports betting and online markets.”
If the on line casino operator acquires the iGaming firm, Gamesys CEO Lee Fenton will take the reins of the mixed group.
The potential deal would be the newest in a string of acquisitions for Bally’s (previously Twin River Worldwide Holdings) in current months. Last yr, the corporate purchased on line casino properties in New Jersey, Nevada, Louisiana, and Illinois to broaden its land-based presence.
It additionally bought the Bally’s model from Caesars. After altering its company title to Bally’s, the corporate is now set to rebrand its properties throughout the US to replicate its new id.
In addition, it bought sports activities betting platform Bet.Works in a $125 million deal in November and acquired day by day fantasy sports activities operator Monkey Knife Fight earlier this month, indicating curiosity in each the sports activities betting and DFS fields.
Source: Casino operator Bally’s agrees ‘key terms’ of £2bn Gamesys offer, The Financial Times, March 24, 2021