The US casino company Bally’s has reached an agreement over the major terms of a £2-billion deal with Gamesys. The tie-up with the UK gambling operator would be the latest takeover deal between transatlantic partners seeking to establish a better presence in the US sports betting sector.
Under the terms of the proposed acquisition, Bally’s would purchase Gamesys’ shares at the price of £18.50 each.
The takeover of the UK gambling company would help Bally’s establish better expertise in offering digital gambling products, as Gamesys own the Jackpotjoy and Virgin Casino brands. On the other hand, Gamesys would take advantage of the quickly-growing popularity of Bally’s land-based and online sports betting platform in the US.
As explained by the Chair of Gamesys, Neil Goulden, the deal would combine an operator that has a lot of online experience and a retail gambling company in one entity that would benefit from what is expected to become the largest sports betting market on a global scale. If the acquisition is finalised, Lee Fenton, the CEO of Gamesys, will take over the combined company, which will also keep the domestic gambling business of the UK operator along with its assets in Spain and Japan.
Bally’s explained in its statement that almost one-third of Gamesys’ board has indicated to the US casino company that it intends to recommend the takeover bid to the UK gambling operator’s shareholders.
US Gambling Company Bally’s Seeks to Consolidate Better Presence in the Online Gambling Sector
Although the per-share price of the deal represents an almost 13% premium of Gamesys’ closing stock price on March 23rd, some analysts believe it would undervalue the medium-term prospects of the UK gambling operator’s business because it is actually one of the few gambling companies in Europe that owned their technology outright.
According to a person with knowledge of the situation, the two companies first established contact in December 2020. Yesterday, Bally’s revealed that it made its initial takeover offer to Gamesys on January 26th, 2021.
If completed, the transaction would be the latest in a series of merger and acquisition deals between US gambling companies seeking to take over UK gambling operators with serious expertise in the sector to help them boost their share in the growing sports betting sector of the US.
Currently, Bally’s operates eleven casino venues in seven US states, as well as 13 betting shops and a horse racetrack in the state of Colorado. Lately, the company has been aimed at expanding its online gambling assets. Earlier in March, Bally’s purchased the online daily fantasy sports platform Monkey Knife Fight, while a few months earlier, in November, it acquired Bet. Works, another sports betting platform in the US.
Bally’s has revealed its plans to roll out some online gambling products in its domestic market as of the second quarter of 2021.
- Author
Olivia Cole
