The Sale of Bally’s AC Has Officially Concluded!

Bally's Atlantic City

Back in April, news broke that Caesars Entertainment was selling Bally’s Atlantic City to Twin River Holdings. It was one of the largest acquisitions for Twin River as a company in its history. New reports claim that the sale of Bally’s AC has now officially concluded.

Twin River is now going by Bally’s name. This company has worked hard to expand around the United States over the past few years. Today, we’re going to talk about what this sale means for Atlantic City moving forward.

Let’s get into it!

Caesars Entertainment Has Undergone Some Major Changes Recently

The name Caesars is synonymous with flashy hotels and casinos. This company was founded back in 1990 and quickly took control over some of the biggest and best gambling venues in the country. Over the past decade, however, the company began seeing large revenue declines.

In 2019, news broke that Eldorado Resorts paid an astounding $17 billion to acquire Caesars Entertainment. It was the largest casino sale in history. As many expected, however, it took more than a year for this deal to go through.

In order to gain approval from state gambling commissions and the SEC, both of these companies needed to make some major changes. Much of that centered around casino sales. Commissions wanted to ensure that this merged company would not form a monopoly.

This merger has been completed and things seem to be running smoothly. Not long ago, the new Caesars purchased Willaim Hill for more than $3 billion. This was done in an effort to break into the fast-growing US sports betting industry.

Caesars has also sold many of its properties recently. To the surprise of analysts, the company allowed Twin River to take control of its Bally’s brand name. Twin River is now known as Bally’s Corporation and is focused on expansion, too.

We’re set to see some big changes with Bally’s casino in Atlantic City sometime in the near future.

The Sale of Bally’s AC Has Finally Concluded!

As we just mentioned, Caesars Entertainment has gone through several major casino sales over the last year and a half. The company announced it was selling Bally’s Atlantic City to Twin River Holdings back in April. This sale was instrumental in Caesars getting its merger approval from the New Jersey Gaming Commission.

A major casino sale like this cannot happen overnight, though. There were several hoops that both Caesars and Twin River (now known as Bally’s Corporation) needed to jump through. Fortunately, this sale has now officially concluded.

The acquisition price for this venue was $25 million. That’s a good deal when considering the venue is situated in one of the country’s biggest gambling destinations. Historically speaking, however, Bally’s Atlantic City is one of the worst-performing casinos in New Jersey.

Officials within Bally’s Corporation are confident they can turn things around. Earlier this month, the company pledged to invest more than $90 million towards renovations for this venue. The goal is to make this the best new gambling venue in the city.

George Papanier, President and Chief Executive Officer of Bally’s Corporation released a statement this week on the final sale of this venue.

“We strongly believe in the potential of the Atlantic City market and are confident that we can restore Bally’s to its former glory,” he said. “We are pleased to close on this transaction, which represents the latest addition in our ongoing portfolio diversification strategy, and look forward to implementing our capital improvement plans to completely renovate the property with first-in-class amenities and offerings. We have a proven track record of implementing strategic initiatives at acquired properties in order to drive growth and revenue improvements, and plan to bring the iconic property to a level not seen in years.”

This is one of the biggest moves for Bally’s Corporation in years. Atlantic City has been improving massively over the years. 2020 has halted much of the progress being made, yet many analysts expect things to recover next year.

New Jersey’s Online Gambling Revenue is Holding Strong

The country’s land-based casino industry has been hurting badly this year. For months, all casinos around the US were completely shut down. Many, including some of the ones in Las Vegas, have remained closed to this day.

New Jersey started allowing its casinos to open again in July. Like casinos in other states, these venues struggled to attract players. As time went on and regulations were lifted, more people began flocking to Atlantic City.

Land-based casino revenue remains low, even with the uptick in tourism. Fortunately, New Jersey has a regulated online sports betting and casino gambling industry. These online gaming platforms are bringing the state some much-needed revenue right now.

New Jersey is proving how valuable these online gambling options can be. In October, for example, the state broke its own all-time revenue record for sports betting and online casino gambling. Many other states are now looking more into the regulation of these gambling options.

Many expect additional regulations to begin hitting the casinos in New Jersey. Earlier this month, Governor Murphy began ordering casino restaurants to close at night. He has warned that if things do not recover, the casinos here may be forced to shut down again. With the sale of Bally’s AC now finalized, everyone hopes that things are better here by the time the venue’s renovation is complete.

Are you excited to see what Bally’s Corporation does to its new casino in Atlantic City? Do you think the casinos in New Jersey will need to shut down again? Let us know in the comments section below!

Twin River Pledges $90M For Rehab of Bally’s Atlantic City

Ballys Atlantic City
The Rhode Island company which is buying the worst-performing Atlantic City casino has pledged to upgrade the property and beef up its current offerings.

During a public hearing before the Casino Control Commission last Wednesday, Twin River Worldwide Holdings Inc. committed to spending $90M over the next five years to rehabilitate Bally’s Atlantic City and make it competitive again.

Twin River is requesting for an interim casino authorization, a preliminary regulatory procedure before the granting of a full casino license, to operate Bally’s Atlantic City. The Rhode Island company, which will be changing its name to Bally’s on November 9th, agreed to purchase the casino hotel property from Caesars Entertainment Inc. and VICI Properties for $25M.

Said, Marc Crisafaulli, Twin Rivers executive vice president of strategic development and government relations:

“We want to make sure Bally’s is competitive again and return it to its former glory. We’re committed to making it a signature property again, right at the center of the Boardwalk. We know it’s going to take a lot of time, effort and investment.”

Expanding the Atlantic City Market

At Wednesday’s hearing, Executives from Twin River highlighted several key areas for the development plan for Bally’s. These include a partnership with FanDuel for a permanent sportsbook which will be opened in March, the renovation of more than 900 hotel rooms, creation of 30-40 mini-suites, and a brand new restaurant with bar which will be completed by summer.

Twin River CEO and President George Papanier also addressed the issue of a re-launched Bally’s hurting the other Atlantic City casinos. Papanier assured the Commission that it would be using its existing customer database from the New England, Delaware, Maryland, and Virginia regions to expand AC’s gambling market.

Dead Last Among Nine AC Casinos

Bally’s Atlantic City was the third Atlantic City casino to open in 1979 and once led the market. But it has seen a steady decline and the last years have not been kind to it as Bally’s as it currently ranks dead last among the nine Atlantic City casinos in terms of revenue wins from gamblers. Bally’s Atlantic City has reported a win of $72M for the period January to September 2020. In contrast, AC’s top performing casino, the Borgata, has posted a $373M win over the same period.

Twin River initially planned to invest $56M in Bally’s but during Wednesday’s statement, it revealed that the amount has been increased to $90M. According to its Chief Finance Officer Stephen Capp, Twin Rivers has close to half-a-billion dollars worth of liquidity to draw upon.