Bally’s Sells Asian Online Gambling Assets in Strategy Move

Bally’s Corporation is making a significant move as it prepares to go private, announcing the sale of its online gambling business in Asia. This decision, detailed in an 8-K filing, signals a shift in the company’s strategy, as it focuses on its operations in Europe and North America. The divestiture marks the first concrete sign of potential strategic changes, especially as Bally’s merger with Standard General is expected to finalize soon, taking the company private.

While this move is part of a broader restructuring, questions remain about the future of Bally’s online operations in the U.S., particularly its Bally Bet sportsbook and Bally Casino platforms. Given the weak performance of its digital division, many are speculating whether the company will start scaling back or shutting down some of its U.S. online gambling activities.

Will Bally’s Reduce U.S. Online Gambling?

When a company of Bally’s size transitions to private ownership, it often undergoes a thorough reevaluation of its business operations. Prior to the merger, major shareholders, such as K&F Growth Capital, had openly criticized Bally’s digital gaming strategy. K&F called for Bally’s to divest its international digital assets and scale back its U.S. operations, particularly focusing more on its land-based casinos. Bally’s has acted on this by selling its Asian assets, but the question remains whether the company will follow the same logic domestically.

In particular, K&F’s strategy emphasized reducing Bally’s U.S. digital footprint to better align with its physical casino business. Given that Bally’s generates most of its revenue from land-based casinos, K&F argued that the company should prioritize this segment over its online platforms. While this approach could involve reducing Bally’s sports betting and casino offerings in the U.S., it’s unclear if Bally’s will fully embrace it now that it will be operating outside of shareholder scrutiny. Currently, Bally’s operates both physical casinos and digital platforms across 10 U.S. states, including New Jersey, Pennsylvania, and Rhode Island, where it runs its online casino. Its Bally Bet sportsbook is available in 10 states, but only three—Colorado, Indiana, and New York—have both land-based casinos and online sports betting.

If Bally’s follows the K&F strategy, states like Arizona, Iowa, and Massachusetts, where it operates an online sportsbook but lacks a physical casino presence, could be areas where the company scales back its operations. However, markets like New Jersey and Rhode Island, where Bally’s online casino holds a significant share, may be less vulnerable to cuts.

The sale of Bally’s Asian digital gaming assets signals the company’s strategic shift to focus on its North American and European operations as it prepares to go private.

Conclusion

Shutting down online casino operations in New Jersey or Pennsylvania would likely be a costly move. Bally’s online casino generated nearly $5.4 million in New Jersey in September 2024, and Pennsylvania remains one of the most lucrative markets for online gambling in the U.S. Given the profitability of these markets, pulling out would represent a significant loss for the company, especially when digital platforms can also serve as a marketing tool for its physical casinos.

As Bally’s prepares to go private, it’s likely that the company will continue operating its online gambling platforms in North America. While it may reconsider its digital footprint in certain states where it lacks a physical presence, key markets like New Jersey and Pennsylvania will probably remain integral to Bally’s strategy. For now, players should not expect immediate changes to their access to Bally’s online gambling products, although the company’s transition to private ownership could bring further strategic shifts down the line.