Bally's Corporation Issues Statement Regarding Richmond's Casino Resort Decision

Rhea-AI Summary

Bally's Corporation (NYSE: BALY) announced the City of Richmond's decision to exclude its Richmond Casino Resort from the casino selection process. The proposal included a $650 million financial package, which featured a $100 million upfront payment and $28-$30 million in annual taxes, promising to attract 3.7 million visitors and generate $415 million in annual gross revenue. Despite expressing disappointment, Bally's remains committed to providing its online sports betting platform in Virginia under its temporary permit.

Positive

• Total proposed financial package valued at $650 million.
• Upfront payment of $100 million to the City of Richmond.
• Estimated annual gross revenue of $415 million for the casino.
• Creation of over 2,000 full-time equivalent jobs.

Negative

• Bally's Richmond Casino Resort excluded from the city’s casino selection process.
• Potential loss of significant revenue and market presence in Richmond.

PROVIDENCE, R.I., April 21, 2021 /PRNewswire/ -- Bally's Corporation (NYSE: BALY), a leading U.S. omnichannel provider of land-based gaming and interactive entertainment, today issued the following statement regarding the City of Richmond's decision to remove Bally's Richmond Casino Resort from its casino selection process.

George Papanier, President and Chief Executive Officer of Bally's Corporation, said, "We are the best operator to partner with the City on this endeavor and provided the largest financial package with the most economic benefit to RVA residents and business owners. We were deeply committed to this project, as well as to becoming a responsible neighbor and member of the Richmond community. Should the City reconsider its decision, we would be pleased to reengage."

With a total value of $650 million, including an upfront, unrestricted $100 million payment to the City, along with $28-$30 million in annual tax payments, Bally's Richmond offered the largest financial package of the remaining finalists. Bally's Richmond was estimated to attract approximately 3.7 million visitors annually, generating $415 million in annual total gross revenue, $5.3 billion in economic value over 10 years as well as creating over 2,000 full-time equivalent jobs.

Papanier continued, "Though we stand by the fact that our bid was objectively the strongest, we respect the City's decision, and look forward to providing our best-in-class online sports betting platform to sports fans across the State of Virginia under our recently awarded temporary sports wagering permit."

About Bally's Corporation

Bally's Corporation currently owns and manages 12 casinos across eight states, a horse racetrack and 13 authorized OTB licenses in Colorado. With more than 6,000 employees, the Company's operations include 13,308 slot machines, 460 game tables and 3,342 hotel rooms. Following the completion of pending acquisitions, which include Tropicana Evansville (Evansville, IN) and Jumer's Casino & Hotel (Rock Island, IL), 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. Bally's also maintains a multi-year market access partnership with Elite Casino Resorts through which it will provide mobile sports betting in Iowa. The Company also maintains a temporary sports wagering permit to conduct online sports betting in the Commonwealth of Virginia. Its shares trade on the New York Stock Exchange under the ticker symbol "BALY".

Cautionary Note Regarding Forward-Looking Statements

This document includes forward-looking statements within the meaning of the securities laws. Forward-looking statements are statements as to matters that are not historical facts, and include statements about Bally's plans, objectives, expectations and intentions.

Forward-looking statements are not guarantees and are subject to risks and uncertainties. Forward-looking statements are based on Bally's current expectations and assumptions. Although Bally's believes that its expectations and assumptions are reasonable at this time, they should not be regarded as representations that Bally's expectations will be achieved. Actual results may vary materially. Forward-looking statements speak only as of the time of this document and Bally's does not undertake to update or revise them as more information becomes available, except as required by law.

Important factors beyond those that apply to most businesses, some of which are beyond Bally's control, that could cause actual results to differ materially from our expectations and assumptions include, without limitation:

• uncertainties surrounding the COVID-19 pandemic, including limitations on Bally's operations, increased costs, changes in customer attitudes, impact on Bally's employees and the ongoing impact of COVID-19 on general economic conditions;
• unexpected costs, difficulties integrating and other events impacting Bally's recently completed and proposed acquisitions and Bally's ability to realize anticipated benefits;
• risks associated with Bally's rapid growth, including those affecting customer and employee retention, integration and controls, and whether Bally's recently announced combination with Gamesys will be completed and its timing for completion;
• risks associated with the impact of the digitalization of gaming on Bally's casino operations, Bally's expansion into iGaming and sports betting and the highly competitive and rapidly changing aspects of Bally's new interactive businesses generally;
• the very substantial regulatory restrictions applicable to Bally's, including costs of compliance;
• restrictions and limitations in agreements governing Bally's debt could significantly affect Bally's ability to operate our business and our liquidity; and
• other risks identified in 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 SEC on March 13, 2020 and other filings with the SEC.

The foregoing list of important factors is not exclusive and does not include matters like changes in general economic conditions that affect substantially all gaming businesses.

You should not place undue reliance on Bally's 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

FAQ

What did Bally's Corporation announce on April 21, 2021?

Bally's Corporation announced that the City of Richmond removed its Richmond Casino Resort from the casino selection process.

What was the value of Bally's proposed financial package for the Richmond Casino Resort?

Bally's proposed a financial package valued at $650 million, including a $100 million upfront payment.

What are the expected annual visitors and revenue for Bally's Richmond Casino Resort?

Bally's Richmond Casino Resort was estimated to attract approximately 3.7 million visitors and generate $415 million in annual gross revenue.

How many jobs would Bally's Richmond Casino Resort create?

Bally's Richmond Casino Resort was projected to create over 2,000 full-time equivalent jobs.

Will Bally's continue its operations in Virginia after the Richmond decision?

Yes, Bally's remains committed to providing its online sports betting platform in Virginia under its temporary sports wagering permit.