PROVIDENCE, R.I., Jan. 4, 2021 /PRNewswire/ -- Bally's Corporation (NYSE: BALY) today
announced that it has signed a framework agreement with
Ira Lubert to jointly design,
develop, construct and manage a Category 4 licensed casino. The
Pennsylvania Gaming Control Board recently awarded Lubert the right
to apply for a Category 4 slot machine license for a casino to be
located within a 15-mile radius of Unionville Borough, Centre County, Pennsylvania.
Construction of the casino is expected to begin the first half
of 2021 and will take approximately one year to complete. Subject
to receipt of all applicable regulatory approvals, it will house up
to 750 slot machines and 30 table games. The casino will also
provide, subject to receipt of separate licenses and certificates,
retail sports betting, online sports betting and online gaming.
"Expanding our rapidly growing, national footprint into the
attractive Pennsylvania gaming
market represents yet another major milestone for Bally's and a great way to cap off a truly
extraordinary year," said George
Papanier, President and Chief Executive Officer of
Bally's Corporation. "Regional,
land-based casinos remain the cornerstone of our portfolio
diversification strategy, providing the necessary support for the
growth, development and success of our future sports betting and
iGaming initiatives. We look forward to combining our own proven
track record of greenfield development with Ira Lubert's local knowledge and expertise to
bring Bally's first-in-class
gaming experience and amenities to customers and sports fans across
Pennsylvania."
Papanier continued, "Ira is an experienced real estate developer
with significant ties to the greater Centre County community and a proven track
record in Pennsylvania gaming. We
look forward to working with Ira, not only to build and develop the
facility, but to contribute to the surrounding community."
Bally's estimates the total
cost of the project, including construction, licensing and sports
betting/iGaming operations, to be approximately $120 million. Bally's will acquire a majority equity
interest in the partnership, including 100% of the economic
interests of all retail sports betting, online sports betting and
iGaming activities associated with the project.
Ira Lubert said, "I am excited to
have Bally's as our partner to
complement our vision, industry experience and financing
capabilities. Together, I believe we will make this transformative
project successful for all stakeholders and look forward to the
positive impact the redevelopment will have on the community."
The transaction is subject to receipt of required regulatory
approvals, operating certificates and other customary closing
conditions.
Advisors
Jones Day acted as legal counsel
and Innovation Capital, LLC acted as financial advisor to
Bally's, and DLA Piper acted as
legal counsel to Lubert, on the transaction.
About Bally's
Corporation
Bally's Corporation currently
owns and manages 11 casinos across seven states, a horse racetrack,
and 13 authorized OTB licenses in Colorado. With more than 5,900 employees, the
Company's operations include 13,260 slot machines, 459 game tables
and 2,941 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), Eldorado Resort Casino
Shreveport (Shreveport, LA),
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), and MontBleu Resort Casino & Spa (Lake Tahoe, NV), as well as the construction
of a land-based casino near the Nittany Mall in State College, PA, Bally's will own and manage 15 casinos across
11 states. Its shares trade on the New York Stock Exchange under
the ticker symbol "BALY."
About Ira Lubert
Lubert is a well-known real estate and private equity investor,
whose projects include a minority founding investment in Rivers
Casino Pittsburgh and the development of the Valley Forge Casino
Resort near Philadelphia,
PA.
Forward Looking Statements
This communication contains "forward-looking" statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
All statements, other than historical facts, including future
financial and operating results and Bally's Corporation's ("Bally's") plans, objectives, expectations and
intentions, legal, economic and regulatory conditions and any
assumptions underlying any of the foregoing, are forward-looking
statements. Forward-looking statements are sometimes identified by
words like "may," "will," "should," "potential," "intend,"
"expect," "endeavor," "seek," "anticipate," "estimate,"
"overestimate," "underestimate," "believe," "could," "project,"
"predict," "continue," "target" or other similar words or
expressions. Forward-looking statements are based upon current
plans, estimates and expectations that are subject to risks,
uncertainties and assumptions. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated
or anticipated by such forward-looking statements. The inclusion of
such statements should not be regarded as a representation that
such plans, estimates or expectations will be achieved. Important
factors that could cause actual results to differ materially from
such plans, estimates or expectations include, among others, (1)
uncertainty surrounding the ongoing COVID-19 pandemic, including
uncertainty regarding its extent, duration and impact, the
resulting closure of Bally's
properties (all of which have re-opened at some limited level of
capacity) and the risk that the ongoing COVID-19 pandemic may
require Bally's properties to
close again for an indeterminable period of time; (2) the time it
will take Bally's to return its
facilities to full capacity and the restrictions applicable to its
facilities until then; (3) the costs to comply with any mandated
health requirements associated with the virus; (4) customer
responses as Bally's facilities
continue to operate under various restrictions including the time
it takes customers to return to the facilities and the frequency
with which they visit Bally's
facilities; (5) the economic uncertainty and challenges in the
economy resulting from the ongoing COVID-19 pandemic, including the
resulting reduced levels of discretionary consumer spending; (6)
challenges Bally's may face in
bringing employees back to work upon re-opening of its facilities;
(7) unexpected costs, charges or expenses resulting from recently
completed and proposed acquisitions or development projects; (8)
uncertainty as to whether Bally's
will be able to realize the anticipated benefits of its
acquisitions; (9) risks associated with borrowings to fund
Bally's recently completed and
proposed acquisitions, and the need to amend our bank credit
facility for the effects of COVID-19 when the current waiver of
financial covenants expires next year; and (10) other risk factors
as detailed under Part I. Item 1A. "Risk Factors" of Bally's Annual Report on Form 10-K for the
fiscal year ended December 31, 2019
as filed with the Securities and Exchange Commission on
March 13, 2020 and Bally's Quarterly Report on Form 10-Q for the
fiscal quarter ended September 30,
2020 as filed with the Securities and Exchange Commission on
November 6, 2020. The foregoing list
of important factors is not exclusive.
Any forward-looking statements speak only as of the date of
this communication. Bally's does
not undertake any obligation to update any forward-looking
statements, whether as a result of new information or development,
future events or otherwise, except as required by law. Readers are
cautioned not to place undue reliance on any of these
forward-looking statements.
Investor Contact
Steve Capp
Executive Vice President and Chief Financial Officer
401-475-8564
InvestorRelations@twinriver.com
Media Contact
Richard Goldman / David Gill
Kekst CNC
646-847-6102 / 917-842-5384
BallysMediaInquiries@kekstcnc.com
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SOURCE Bally's Corporation