Bally’s, a regional casino operator, has announced the sale of its Asian interactive gaming business to a group of executives from the entity being divested. The financial details of the transaction were not disclosed, but Bally’s stated that it will have a neutral impact on its earnings before interest, taxes, depreciation, and amortization (EBITDA).
According to a Form 8-K filing with the Securities and Exchange Commission (SEC), the sale is not expected to have a significant impact on Bally’s adjusted EBITDA or free cash flow. Going forward, the company’s financial statements will only show licensing and royalty revenues received from the buyer, which may be lower than current revenues but are expected to have higher profitability margins.
By divesting its Asian digital operations, Bally’s will be able to concentrate its focus and resources on comparable operations in Europe and North America. The company had previously shown optimism about the Asian market, despite challenges faced in the region.
Bally’s largest shareholder, Standard General, is in the process of acquiring the casino operator. While it is unclear if the buyer influenced the sale of the Asian business, shedding underperforming assets before the acquisition could help the company realign its focus. This move may also allow Bally’s to prioritize important land-based projects, such as the construction of a permanent casino hotel in Chicago and a new integrated resort on the Las Vegas Strip.
Looking ahead, investors and industry analysts will be eager to see how the sale of the Asian interactive gaming business will impact Bally’s overall financial performance. The upcoming third-quarter results announcement on November 6 may provide more insights into the company’s strategic direction and future growth plans. Stay tuned for updates on Bally’s evolving business strategy and operational developments.
