Bally Bet Sportsbook, the online betting app from Bally’s Corporation, showed some positives when looking at the company’s third quarter 2023 results. However, the overall takeaway from the financial results is a bit more negative, as the company experienced total losses of $61.8 million, and the company has adjusted some of its expectations going forward.
Still, there is excitement for the future with a potential New York casino as well as a major deal with the relocating Oakland A’s.
Bally Bet Sportsbook Sees Positives In Third Quarter
Bally Bet Sportsbook is in an interesting spot right now. The mobile sportsbook is currently down in Indiana, New York, and Iowa. However, the platform is still taking bets in Virginia, Colorado, Arizona, and Ohio. CEO Robeson Reeves, who has held the position since March of 2023, has expressed intentions to relaunch the Bally Bet app in three states by the end of 2023.
A Q3 loss of $17.6 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) has been reported for Bally’s North American Interactive division. However, according to Legal Sports Report, this is still an improvement over the $19.7 million in EBITDA losses from the previous year. The interesting aspect to these numbers is the fact that Bally Bet wasn’t active in as many states last year. Quarterly revenue overall saw a 33.6% improvement to $29.6 million.
With Bally opting to switch to White Hat and Kambi for its betting app, the corporation ultimately decided to lay off approximately 300 employees. Bally had previously committed to $215 million in total acquisitions in the hope of keeping the app in-house.
Bally's Interactive launches the @BallyBet Sportsbook app in Ohio in partnership with the Cleveland @Browns. This also includes a Bally Bet Retail Sportsbook in a reimagined sports bar concept at the Harry Buffalo location in downtown Cleveland: https://t.co/MjOXuKpn8P. pic.twitter.com/Rqhcvepoxs
— Bally's Corporation (@BallysCorp) September 11, 2023
Bally’s Experiences Q3 Losses & Adjusts Year-End Guidance
While Bally’s was profitable overall for the third quarter of 2022, the company experienced losses of $61.8 million in Q3 2023. While Bally’s was previously looking for between $655 million and $700 million in adjusted earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (EBITDAR), those numbers have since shifted to between $640 million and $655 million. Revenue guidance for the fourth quarter of the year has also been adjusted down by 7%.
Bally’s did see 9.4% year-over-year increase to $632.5 million in Q3 revenue. However, this fell short of the overall goal by over $2 million.
— Bally Bet (@BallyBet) November 2, 2023
Retail Casinos Remain A Focal Point
Brick-and-mortar casinos are still one of the top focuses for Bally’s Corporation going forward. A casino bid is expected for the Bally’s location at Ferry Point, which currently has an 18-hole golf course and 20,000 square-foot clubhouse. The purchase of this location from the Trump family came in September 2023, and it will be interesting to keep an eye on a potential Bally’s location opening in the New York casino market.
One of the top focuses is also on the company’s deal with the Oakland A’s, who are in the midst of a relation to Las Vegas. Part of the deal includes the team’s stadium being constructed at the Tropicana Las Vegas location owned by Bally’s. However, further decisions won’t be made until the middle of November, as Major League Baseball has delayed the process. In the meantime, Bally’s Corporation has plenty of retail casinos across the U.S. in states such as Rhode Island, Colorado, Missouri, Illinois, and New Jersey.