A fiscal recap of Bally’s Corporation’s performance in 2023 reveals an organization riding high on revenue gains across all divisions. The gaming and hospitality giant has reported an 8.6% surge in overall revenue, reaching an impressive $2.45 billion for the year. Bally’s considerable success comes with a spotlight on its interactive engagement strategies in North American and international markets, amplifying revenue streams and strengthening its industry foothold.
The year was marked by pivotal decisions and strategic shifts, starting with an announcement that Bally’s would trim its North American interactive workforce by 15% as a cost-reduction measure. This early stumble was further compounded by looming bankruptcy concerns for Diamond Sports Group, operator of Bally’s branded TV sports networks. Despite the shaky start, Bally’s realigned under the guidance of its newly appointed CEO, Robeson Reeves, who took the reins in March.
Under Reeves’ leadership, Bally’s rolled out several standout initiatives. Notably, it outsourced its sports betting tech stack to industry leaders Kambi and White Hat Gaming. In a bold foray into the UK igaming market, September saw the launch of a Bally’s-branded online casino on the existing Megaways Casino platform through a partnership with Gamesys.
In the land-based sector, Bally’s extended its legacy with the opening of a new temporary casino in Chicago during the third quarter. The enterprise also announced a landmark deal with the Major League Baseball franchise Oakland Athletics, which will see the construction of a new ballpark on a portion of the soon-to-close Tropicana Las Vegas property.
CEO Reeves expressed optimism about the company’s trajectory for 2023. Leveraging growth across both land-based and interactive entities, Reeves envisions Bally’s on a path ripe for continued expansion in 2024. The CEO also emphasized forthcoming projects in pivotal areas like New York, with plans for a new casino at Bally’s Golf Links Ferry Point in the Bronx.
Financially, 2023 was a year of favorable outcomes for Bally’s. Gaming revenue saw a substantial boost, rising by 7.9% to nearly $2 billion, while non-gaming revenue ascended by 11.7%, amounting to $457 million. The bread and butter of the company’s revenue, its casinos, and resorts division swelled by 11% to $1.36 billion. On the international front, interactive revenue inched up by 2.9% to $973.2 million. North America emerged as a powerhouse for the company’s interactive growth, recording a stellar 37.8% increase to $112.6 million.
Operational expenses diminished by 8.7%, allowing for healthier financial standing despite a pre-tax loss of $167.6 million, significantly improved from the previous year’s $454.5 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also experienced a slackening, shrinking by 3.9% to $527.3 million.
Reviewing the closing chapter of 2023, Bally’s fourth-quarter revenue climbed 6.1%, tallying up to $611.7 million. A breakdown of these figures shows a 9.0% increase in gaming revenue and a modest drop in non-gaming revenue. Adjusted EBITDA experienced a dip in the quarter, and after tax adjustments, a net loss still showed, albeit at a reduced magnitude compared to the year before.
Looking ahead, Bally’s remains buoyant regarding its prospects for 2024, postulating a revenue window between $2.50 billion and $2.70 billion. Adjusted EBITDA expectations are set between $655.0 million and $695.0 million, with a confident stance despite initial challenges such as severe winter weather impacts and the closure of the Tropicana Las Vegas. Continued international interactive growth and the launch of igaming in Rhode Island signify just a portion of the strategic developments anticipated to bolster Bally’s in the coming year.
