Bally’s Corporation reported revenue rising 2.5% in the second quarter of 2024 compared to 2023. The gaming company specifically cited the success of its Bally’s Chicago casino as a factor in the increase.
In its earnings call on Aug. 1, Bally’s said most of its revenue in Q2 came from its casinos, including the two it owns in Illinois, the temporary casino in Chicago and Bally’s Quad Cities Casino & Hotel in Rockford.
Bally’s CEO Robeson Reaves said the company is continuing to see growth at Bally’s Chicago, which opened last September.
“Casinos & Resorts revenue of $343.1 million benefited from the ongoing ramp-up of operations at our Chicago temporary casino. The Chicago temporary casino, having now welcomed more than one million total visitors, continues to gain traction with players, and our local database is growing.”
Bally’s stock on the rise
There are currently 15 casinos operating in Illinois. In June, Bally’s Chicago ranked third in revenue, while Quad Cities was in the bottom third. Illinois online casinos remain illegal, but lawmakers are expected to consider the issue again in 2025.
In Bally’s Q2 earnings report, the company’s most successful segment was North America Interactive, with revenue up 94.7% year-over-year to $49.2 million. The $343.1 million from its casinos represented 3% YoY growth. Online revenue in the United Kingdom increased 9% from Q2 of 2023.
Troublingly, Bally’s International Interactive revenue sagged by 7.4% YoY.
Bally’s stock closed at $17.14 on Thursday this week, a 47% increase from May 31, when it was $11.69. As recently as July 17, Bally’s (BALY) was at $13.79 on the New York Stock Exchange.
Construction on Bally’s permanent casino in Chicago is expected to begin later this year though obstacles remain. Its temporary casino is housed in downtown Chicago’s Medinah Temple Building.
The permanent casino will feature a towering 500-room hotel on a 30-acre site. It will be the first modern casino resort in the Windy City.
Merger with Queen Casino Entertainment
It’s been a busy first half of 2024 for Bally’s.
The company recently announced that it will soon merge with Queen Casino Entertainment, an affiliate of Standard General L.P. Reeves celebrated the upcoming merger during the earnings call this week.
“The combination of QC&E’s development pipeline and [Bally’s] growth pipeline provides the company with a clear path toward additional revenue, cash-flow growth, and value accretion.”
The merger ensures Bally’s stockholders will receive $18.25 per share in cash, or they can choose to retain their shares post-merger.
