Casino operator Bally’s reports $61.8M loss in Q3

PROVIDENCE-BASED Bally’s Corp. reported a loss of $61.8 million in the third quarter. It had turned a $593,000 profit in the same period a year ago. / AP FILE PHOTO/WAYNE PARRY

PROVIDENCE – Bally’s Corp. reported a loss of $61.8 million after reporting a $593,000 profit in the same period a year ago.

The Rhode Island-based casino and gaming company said it had a loss of $1.15 per diluted share, a decrease from net income of 1 cent per diluted share one year prior.

The results fell short of Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 17 cents per share.

The company posted revenue of $632.5 million in the period, also falling short of Street forecasts, although it was a 9.4% increase from the $578.2 million in revenue a year prior. Five analysts surveyed by Zacks expected $634.3 million.

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Of the revenue for the quarter, $509 million was from gaming, up 9.3% from the $465.7 million a year ago.

“Bally’s continued to generate very solid operating results across all three of our business segments … while also achieving significant development and project milestones,” said Robeson Reeves, Bally’s CEO. “These included the highly anticipated opening of our Chicago temporary casino as well as the completion of our reconceptualized Kansas City redevelopment. Additionally, we successfully rolled out our new Bally Bet OSB app, strengthening our solid foundation as we approach 2024.”

Bally’s expects full-year revenue in the range of $2.4 billion to $2.5 billion.

Despite improved quarterly revenue figures, Bally’s recorded significant increases in expenses with costs related to gaming growing year over year by 16.2% to $229.1 million and general and administrative expenses rising 15.3% to $230.6 million for the third quarter.

Total operating expenses rose from $524.6 million in the third quarter of 2022 to $595.2 million in the third quarter of this year, a $70.7 million increase.

On Sept. 9, Bally’s Corp. established a new board to focus on Rhode Island operations, with Marc A. Crisafulli selected to lead its efforts. The board will focus “exclusively on operations, growth, community relations and workforce enhancement in Rhode Island” as the gaming and entertainment company seeks to heighten its profile throughout the U.S. and internationally, said Jaymin Patel, vice chairman of the Bally’s board of directors and a member of the new Rhode Island board.

The board includes George Papanier, president of Bally’s; Craig Eaton, Bally’s corporate secretary and president of Bally’s Rhode Island; and Elizabeth Beretta Perik, a member of several state and national boards, including the Rhode Island Hospital Foundation board and The President’s Advisory Committee on the Arts.

On Sept. 14, Bally’s donated $5 million to Community College of Rhode Island to help CCRI create and launch new programming tailored to the gaming, hospitality and security industries.

With the donation – which is the largest such monetary gift CCRI has ever received – CCRI became the state’s only higher education institution to offer certificate and associate degrees rooted in a gaming-focused curriculum.

Bally’s currently operates 15 casinos in 10 states, with plans underway for two new casinos. In the Ocean State, Bally’s has two locations – Twin River Casino in Lincoln and Bally’s Tiverton Casino & Hotel in Tiverton. The company employs 10,700 in total, including about 1,500 workers in Rhode Island.

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