Bally's Big Week Ends With Q4 Earning Report and a New Partnership Deal

It has been a head-spinning six or so months for Bally’s Corporation. Last week alone saw the newly minted elite legal sports betting provider release better-than-expected Q4 earnings, and it also saw them sign on as Authorized Sports Betting Operator of the NBA.

Bally's recent moves have cemented their status as one of, if not the most aggressive and forward-thinking sports betting providers currently in the exploding US legal sports betting scene. Bally's, over a short period of time, has been able to secure their own proprietary mobile sports betting technology, they have secured a strong media presence, a top-tier DFS platform, and partnerships with two of North America's "Big-4" sporting leagues.

More on the Bally's Ascension

In November, Bally's signaled a desire to elevate their brand in the fast-growing US legal sports betting space by buying Bet.Works in a $125 million deal, giving Bally's their own proprietary technology stack and turnkey solution in the mobile betting space. That move turned out to be the start of an avalanche of acquisitions for Bally’s.

Next came the word of an $85 million, 10-year agreement with Sinclair Broadcast Group to rebrand all 21 of their Fox Regional Sports Networks to Bally’s Sports. A move that would significantly increase the visibility of their brand. And then, a deal to acquire the third-largest US daily fantasy company, Monkey Knife Fight was announced a couple of weeks later.

Just last month, Bally's became an official sports betting partner of the NHL, and now comes news of a newfound, mutually beneficial relationship with the NBA. That makes five major deals for Bally’s since November, with little reason to think the merger-spree will end anytime soon.

About That NBA Partnership

The Bally's/NBA strategic partnership deal follows the blueprint of other such deals that sports betting providers have been forging with sports leagues around North America. Bally’s immediately gains “access to official NBA data and the rights to use league logos and marks across its burgeoning roster of online sports wagering products.” The sportsbook will have access to official league data directly from the NBA.

Bally's will also get an immense amount of crucial brand-exposure that they could certainly use during their ascension up the legal sports betting provider ladder. Their brand will be visible before, during, and after NBA broadcasts and will have a presence on all of the NBA's media outlets.

“Partnering with the NBA is an exceptional opportunity for Bally’s, adding to our ongoing momentum with professional sports leagues,” George Papanier, president and chief executive officer of Bally's Corp., said in the release. “Together with the NBA, we will unlock significant opportunities to provide a greater population of NBA fans with new, creative and engaging sports betting products and services.”

Financial terms of the multiyear deal were not disclosed.

Now for the Q4 Numbers

Q4 of 2020 for Bally's Corp. was shaping up to be a disappointing one thanks to the COVID-19 pandemic showing no signs of retreat. But the figures released Thursday actually showed a $20.2 million net income for the company, which is up from the $13.4 million in profits the company posted during the fourth quarter of 2019.

Revenues for Bally's in the quarter that ended December 31st fell a tad short of estimates, however. The company generated $118.1 million in revenues over the three-month span, slightly less than expectations and below the $130.4 million in revenues the company reported during Q4 of 2019.

Wall Street expectations were for share prices for Bally's Corp., with adjusted earnings, to come in around 39 cents. But Bally's beat those estimates by a healthy margin, coming in with a net income of 61 cents on a per-share basis. It translates to good news for the company’s investors, who could have been staring at some intense COVID-related losses.

For the year, Bally's reported a slightly less-than-alarming $5.5 million loss, or 18 cents per share thanks to the yearlong effects of the coronavirus pandemic.

Next Up for Bally’s

Bally’s Bet.Works acquisition is scheduled to close in the next couple of months as is the culmination of their Sinclair deal. Needless to say, the company will be busy into the summer putting together what they hope is a complete and all-encompassing sports betting brand.

The official Bally’s Bets sportsbook is still a few months away from an actual launch-day as well. For now, Bally’s is piggybacking off of the Bet.Works brand in Colorado, Indiana, Iowa, and New Jersey.

Until such time as the Bally’s brand build is complete, look for the company to continue to be aggressive with regard to their growth strategy within the US legal sports betting scene. It appears as though they have been hitting all the right notes so far, and they should continue to do so going forward.