PROVIDENCE, R.I. and
BALTIMORE, Nov. 18, 2020 /PRNewswire/ -- Bally's Corporation
(NYSE: BALY) and Sinclair Broadcast Group, Inc. (NASDAQ: SBGI)
today announced that they have entered into agreements for a
long-term strategic partnership that combines Bally's vertically
integrated, proprietary sports betting technology and expansive
market access footprint with Sinclair's premier portfolio of local
broadcast stations and live regional sports networks ("RSNs"),
STIRR, its popular Tennis Channel, and digital and over-the-air
television network Stadium. Bally's and Sinclair will partner to
create unrivaled sports gamification content on a national scale,
positioning Bally's as the premier omni-channel gaming company with
physical casinos and online sports betting and iGaming solutions
united under a single brand. The transaction is expected to
position Bally's to capture a significant share of the fast-growing
U.S. sports betting and iGaming market.
This marks a major milestone for Sinclair's businesses,
including its RSNs, broadcast stations, Tennis Channel, Stadium and
STIRR, setting the stage for further gamification of live sports
that will provide audiences a first-of-its-kind interactive viewing
experience.
Transaction Highlights:
- Bally's will integrate content into the 190 television stations
that Sinclair owns, operates or provides services to across 88
markets and its sports networks. This will allow Sinclair and
Bally's to jointly market, design and integrate products on a
state-by-state basis, and deliver one-of-a-kind online gaming
experiences to local audiences
- The 21 FOX RSN brands will be rebranded using the Bally
name
- The Sinclair partnership, along with Bally's acquisition of
Bet.Works' iGaming platform, growing market access and land-based
footprint that will soon cover 10 states with additional states
expected to come, position Bally's to capture a significant share
of the estimated future $50 billion
U.S. sports betting and iGaming market opportunity (according to
Wall Street analyst research and Bally's management estimates)
- The transaction will provide Bally's extensive access to
Sinclair's network of local, live sports content as the unified
network brand and integrated partner across 21 RSNs, accounting for
more than half of the U.S. MLB, NBA and NHL teams
- Bally's will have premium integration opportunities across
Tennis Channel, the home of over 95% of all live tennis matches
broadcast in the U.S., Sinclair's 24/7 multi-platform sports
network, Stadium, and STIRR, Sinclair's fast growing
direct-to-consumer streaming app offering live and on-demand
content
- Over the 10-year term, Sinclair's RSN portfolio will receive
annual naming rights fees and committed percentage of Bally's
Interactive's marketing spend
- Full strategic and economic alignment with Sinclair receiving
warrants and options, subject to regulatory approval and other
conditions, to own a minority stake in Bally's
- Sinclair will receive penny warrants to acquire 14.9% of
Bally's common shares as well as warrants to purchase up to a total
of an additional 10% of Bally's common shares contingent on the
achievement of various performance metrics. Sinclair will also
receive options to purchase 5% of Bally's common shares in four
tranches with purchase prices starting at $30/share and escalating to $45/share, exercisable after four years
"This arrangement represents an opportunity to revolutionize the
U.S. sports betting, gaming and media industries," said
Soo Kim, Chairman of Bally's
Corporation's Board of Directors. "Sinclair, with its broad
holdings of stations, channels and RSNs, provides immediate,
national brand recognition that will support the development of
Bally's player database for both our traditional casinos as well as
our future online offerings, and ultimately deliver significant
shareholder value. We look forward to integrating our
first-in-class, omni-channel sports betting and iGaming offerings
with Sinclair's expansive broadcast network to create a more
engaging and tailored experience for sports fans, positioning
Bally's to become one of the top U.S. sports betting and iGaming
operators."
Chris Ripley, President and CEO
of Sinclair, commented, "Since acquiring Tennis Channel a few years
ago and the RSNs last year, we have been working on developing an
innovative experience that changes the way people think about and
view live sports across all our platforms. Bally's, with its strong
brand name, premier sportsbook technology platform and expansive
market access, is the perfect partner to help us change the
paradigm of sports viewing across all our assets. By integrating
gamification elements that allow audiences a more personalized and
interactive game experience, consumers of live sports in the future
can look forward to a more dynamic and engaging sports viewing
experience. With the U.S. sports betting and iGaming market
expected to ultimately reach ~$50
billion at maturity, this partnership perfectly positions
our sports portfolio to fully capitalize on changing audience
behavior."
Bally's will host a conference call tomorrow at 8:30a.m. EDT to discuss the partnership.
Chris Ripley and David Wang, Founder and CEO of Bet.Works, will
participate in the conference call.
To access the conference call, please dial (833) 570-1160 (U.S.
toll-free) and reference conference ID 3282004. A webcast of the
conference call will be available via the Investors section of the
Company's website www.ballys.com. An online archive of the webcast
will be available for 120 days.
Advisors
Jones Day acted as legal advisor
to Bally's. Moelis & Company LLC acted as financial advisor,
and Fried Frank Harris Shriver & Jacobson LLP and Paul Hastings
LLP acted as legal advisors to Sinclair.
About Sinclair Broadcast Group, Inc.
Sinclair is a diversified media company and leading provider of
local sports and news. The Company owns and/or operates 23 regional
sports network brands; owns, operates and/or provides services to
190 television stations in 88 markets; is a leading local news
provider in the country; owns multiple national networks; and has
TV stations affiliated with all the major broadcast networks.
Sinclair's content is delivered via multiple platforms, including
over-the-air, multi-channel video program distributors, and digital
platforms. The Company regularly uses its website as a key source
of Company information which can be accessed at www.sbgi.net.
About Bally's Corporation
Bally's Corporation currently owns and manages 10 casinos across
six states, a horse racetrack, and 13 authorized OTB licenses in
Colorado. With more than 5,400
employees, the Company's operations include 11,859 slot machines,
405 game tables and 2,538 hotel rooms. Properties include Twin
River Casino Hotel (Lincoln, RI),
Tiverton Casino Hotel (Tiverton,
RI), Hard Rock Hotel & Casino (Biloxi, MS), Casino Vicksburg (Vicksburg, MS), Dover Downs Hotel & Casino
(Dover, DE), Bally's Atlantic City (Atlantic City, NJ), Casino KC (Kansas City, MO), Golden Gates Casino (Black Hawk, CO), Golden Gulch Casino
(Black Hawk, CO), Mardi Gras Casino (Black Hawk, CO), and Arapahoe Park racetrack
(Aurora, CO). Following the
completion of pending acquisitions, which include Tropicana
Evansville (Evansville, IN),
Jumer's Casino & Hotel (Rock Island,
IL), Eldorado Shreveport Resort and Casino (Shreveport, LA), and MontBleu Resort Casino
& Spa (Lake Tahoe, NV), the
Company will own and manage 14 casinos across 10 states. Its shares
trade on the New York Stock Exchange under the ticker symbol
"BALY."
Forward Looking Statements
Certain statements and information in this communication may be
deemed to be "forward-looking statements" within the meaning of the
Federal Private Securities Litigation Reform Act of 1995.
Forward-looking statements may include, but are not limited to,
statements relating to Sinclair's and Bally's objectives, plans and
strategies, and all statements (other than statements of historical
facts) that address activities, events or developments that
Sinclair and Bally's intend, expect, project, believe or anticipate
will or may occur in the future. These statements are often
characterized by terminology such as "believe," "hope," "may,"
"anticipate," "should," "intend," "plan," "will," "expect,"
"estimate," "project," "positioned," "strategy" and similar
expressions, and are based on assumptions and assessments made by
management of Sinclair and Bally's in light of their experience and
their perception of historical trends, current conditions, expected
future developments, and other factors they believe to be
appropriate. Any forward-looking statements in this communication
are made as of the date hereof, and Sinclair and Bally's undertake
no duty to update or revise any such statements, whether as a
result of new information, future events or otherwise.
Forward-looking statements are not guarantees of future
performance. Whether actual results will conform to expectations
and predictions is subject to known and unknown risks and
uncertainties, including: general economic, market, or business
conditions; risks associated with the ability to consummate the
transactions and the timing of the closing thereof; the risk that
Sinclair may not be able to recognize the expected value of its
equity investment in Bally's if regulatory approval is delayed, is
not obtained or is obtained subject to conditions that are not
anticipated; the risk that the upward trend in legalization of
sports betting by states will not continue, the risk associated
with leveraging new revenue opportunities; pricing fluctuations in
local and national advertising; the ability to realize anticipated
benefits of the partnership; the potential impact of announcement
of the partnership or consummation of the transactions on
relationships, including with employees, customers and competitors;
and other circumstances beyond the control of Sinclair and Bally's.
Refer to the section entitled "Risk Factors" in Sinclair's and
Bally's annual and quarterly reports filed with the SEC for a
discussion of important factors that could cause actual results,
developments and business decisions to differ materially from
forward-looking statements.
Sinclair Investor
Contacts
Steve
Zenker
Vice President,
Investor Relations
Billie-Jo
McIntire
Director, Investor
Relations
(410)
568-1500
|
Bally's Investor
Contact
Steve Capp
Executive Vice
President and Chief Financial Officer
(401)
475-8564
InvestorRelations@twinriver.com
|
Sinclair Media
Contact
Michael
Padovano
mpadovano@5wpr.com
|
Bally's Media
Contacts
Richard Goldman /
David Gill
Kekst CNC
(646) 847-6102 /
(917) 842-5384
BallysMediaInquiries@kekstcnc.com
|
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SOURCE Bally's Corporation; Sinclair Broadcast Group, Inc.