PROVIDENCE, R.I., Jan. 25, 2021 /PRNewswire/ -- Bally's Corporation (NYSE: BALY) (the
"Company"), a leading U.S. provider of land-based gaming and
interactive entertainment, today announced that it has entered into
a definitive agreement to acquire Monkey Knife Fight ("MKF"), the
award-winning, fastest-growing[1] gaming platform and third-largest
daily fantasy sports ("DFS") operator in North America. The all-stock transaction makes
Bally's just the third sports
betting company in the U.S. to have a fantasy sports segment. In
2020, MKF, which offers its loyal users a dynamic and creative
slate of daily sports and e-sports contests, was ranked by
SponsorUnited as the sixth most-searched and tenth fastest-growing
brand in sports and entertainment.
Bally's acquisition of MKF is
the latest step in the Company's long-term growth and
diversification strategy to become the first truly vertically
integrated sports betting and iGaming company in the U.S. with a
B2B2C business model. Importantly, it complements Bally's recent media partnership with Sinclair
Broadcast Group and its pending acquisition of Bet.Works, including
its proprietary technology stack.
"With this acquisition, we are pleased to enter into the
high-growth DFS market. Monkey Knife Fight is a unique asset that
we look forward to incorporating into Bally's constantly growing omnichannel
portfolio of land-based casinos and iGaming platforms," said
George Papanier, President and Chief
Executive Officer of Bally's
Corporation. "As with all of the properties and services that fall
under the iconic Bally's brand, we are committed to providing a
best-in-class DFS platform to sports fans around the country."
With approximately 180,000 registered users and 80,000
depositing players, MKF's distinctive, user-friendly gaming
platform will become an integral component of the "Bally's Interactive" division, as well as
contribute to Bally's growing
player database. MKF will support Bally's plans to develop a potential sports
bettors database in states such as California, Florida and Texas, which are expected to account for
20-25% of U.S. sports betting revenues (according to Wall Street
analyst research estimates). It will also enable Bally's to build a player database in
Canada, a market that is expected
to authorize sports betting in the near future. In addition, the
acquisition will lead to Bally's
developing new and engaging content with MKF for its customers.
Papanier continued, "The MKF acquisition will allow Bally's to leverage both its current customer
database as well as DFS's collection of depositing players. These
assets will also provide Bally's
with a significant advantage in launching its own B2C sports
betting operations."
Additionally, Bally's intends
to combine MKF's expansive geographic presence, which spans 37
states, the District of Columbia,
and Canada, with Sinclair's
significant media footprint, including its portfolio of 21 regional
sports networks, to engage sports fans across the U.S by providing
unique DFS offerings.
"Since our inception, we have distinguished ourselves from
competitors by providing the best experiences for our valued
players, forming strategic partnerships with teams, ownership
groups and players unions, and acquiring strategic assets to
bolster our position in the market," said Bill Asher, Founder and Chief Executive Officer
of Monkey Knife Fight. "I am immensely proud of all we have
accomplished over the past three years at MKF and am confident that
the talented Bally's team has what
it takes to continue to grow and develop what is already a great
business."
As part of the acquisition, MKF is set to receive immediately
exercisable penny warrants to purchase up to approximately
$50 million in Bally's common shares (subject to adjustment)
at closing, and (2) contingent penny warrants to purchase up to
approximately $20 million in
additional Bally's common shares
on each of the first and second anniversaries of closing, for a
possible total of up to approximately $40
million. The contingency relates to MKF's continued
operations in jurisdictions in which it operates at closing. The
transaction is expected to close in the first quarter of 2021,
subject to customary closing conditions.
Advisors
Jones Day served as legal advisor
to Bally's Corporation. Shearman
& Sterling and Stikeman Elliott served as legal advisors, and
Canaccord Genuity served as financial advisor, to MKF.
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 Monkey Knife Fight
Ranked as the third largest Daily Fantasy Sports (DFS) company,
Monkey Knife Fight's (MKF) award winning site is the
fastest-growing gaming platform in North
America. MKF has achieved this explosive growth due to its
unique, fun and engaging style of mobile sports gaming that truly
levels the playing field for the average fantasy sports player.
Unlike most DFS sites, where average sports fans are forced to play
against professionals and rarely win, MKF offers its loyal users a
dynamic, creative and ever-expanding slate of daily sports and
esports contests, where having fun and winning, are part of the
experience. Daily contests are offered for NFL, NBA, MLB, NHL,
Esports, Golf, Soccer, WNBA, and NASCAR events.
Follow Monkey Knife Fight on Facebook (@PlayMonkeyKnifeFight),
Twitter (@MKF), and Instagram (MonkeyKnifeFight).
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 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 the
recently completed acquisitions; (8) uncertainty of the expected
financial performance of Bally's,
including the failure to realize the anticipated benefits of its
acquisitions; (9) Bally's ability
to implement its business strategy; (10) evolving legal, regulatory
and tax regimes; (11) the effects of competition that exists in the
gaming industry; (12) the actions taken to reduce costs and losses
as a result of the COVID-19 pandemic, which could negatively impact
guest loyalty and our ability to attract and retain employees; (13)
risks associated with increased leverage from Bally's recently completed and proposed
acquisitions; (14) the inability or unwillingness of the lenders
under our revolving credit facility to fund requests that we may
make to borrow amounts under the facility; (15) increased borrowing
costs associated with higher levels of borrowing, (16) the risk
that contemplated acquisitions, and the expected benefits therefrom
and the timing thereof, do not occur as planned or at all; and (17)
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.
Bally's Corporation
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
Monkey Knife Fight
Media Contact
Bailey Irelan
BIrelan@hotpaperlantern.com
[1] Sources:
https://usbettingreport.com/news/monkey-knife-fight-partners-with-nfl-and-nflpa/;
https://www.sportico.com/business/sponsorship/2020/monkey-knife-fight-fantasy-draftkings-playbook-1234609881/
View original content to download
multimedia:http://www.prnewswire.com/news-releases/ballys-corporation-to-acquire-monkey-knife-fight-fastest-growing-daily-fantasy-sports-site-in-north-america-301213996.html
SOURCE Bally's Corporation;
Monkey Knife Fight