The Bally’s Corporation, which owns Bally’s Quad Cities Casino and Hotel in Rock Island, has entered into an agreement to be acquired by its largest stockholder, Standard General, in a $4.6 billion deal announced Thursday, July 25.
The deal will mean Bally’s will be combined with regional casino operator The Queen Casino & Entertainment. Standard General is a hedge fund led by Bally’s Chairman Soo Kim.
“The transaction provides Bally’s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline,” Mr. Kim said in a news release Thursday.
Some of the details of the deal, outlined in the release, include:
- Standard General will acquire the outstanding shares for $18.25 per share. The figure represents a 71% premium over the 30-day volume weighted average price per share as of March 8.
- The hedge fund also is extending $500 million to help facilitate the deal.
- Bally’s stockholders electing to retain all or a portion of their Bally’s investment will continue as stockholders of the combined company.
- The deal is expected to close in the first half of 2025 after regulatory approvals and approval by Bally’s stockholders.
- Bally’s said its second quarter results would be released on or before Wednesday, July 31.
According to the release, Bally’s will combine with The Queen Casino & Entertainment Inc. (QC&E), a regional casino operator majority-owned by funds managed by Standard General. QC&E currently owns and operates four casinos across three states, including DraftKings at Casino Queen in East St. Louis, Illinois; the Queen Marquette in Marquette, Iowa; and the Queen Baton Rouge and the Belle of Baton Rouge in Baton Rouge, Louisiana.
The combined company will operate 19 gaming facilities in 11 states.
“The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio,” said Roberson Reeves, Bally’s CEO, in a news release. “With QC&E’s development pipeline recently completed or already well underway, we see a path toward additional revenue and … growth and value accretion as those projects are completed in 2025.”
“We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision,” Mr. Reeves added.
Bally’s Board of Directors recently formed a special committee to consider the proposal from Standard General. Ultimately, the committee decided now was the time to accept the buyout and recommended the board approve the merger.
“After a detailed consideration by the Special Committee, with the assistance of our outside financial and legal advisors, it was determined that the cash consideration from Standard General delivers a meaningful and immediate value to stockholders. We look forward to working with the team at Standard General and QC&E as we move through the process to complete the merger,” said Jaymin Patel, chairman of that committee, in the release.
With 10,600 employees, Bally’s casino operations currently include approximately 15,300 slot machines, 580 table games and 3,800 hotel rooms including its Rock Island casino. Upon completing the construction of a permanent casino facility in Chicago, and a land-based casino near the Nittany Mall in State College, Penn., Bally’s will own and/or manage 16 casinos across 11 states.
