Bally’s Corporation’s company-wide second quarter revenues rose 5.8% over the same period last year. Its total revenue of $657.5 million exceeded analysts’ estimates.
Key Insights:
- Bally’s North American Interactive revenues grew by 21.5%
- The company’s aggressive growth model may encounter turbulance
- Bally’s Chicago casino construction progresses, others pending
Bally’s results were a pleasant surprise after a slight revenue drop in Q1. Overall, Bally’s Chief Executive Officer Robeson Reeves was pleased with the company’s improvement.
“Our second quarter results reflect milestone achievements and marked progress on our continued business transformation as the Bally’s 2.0,” said Reeves.
Bally’s North American Interactive segment was a bright spot in the quarter. Revenues jumped 21.5% compared to the same quarter last year. While some improvement was due to the addition of Queens Interactive, North American Interactive revenues rose even on a Pro Forma basis. Bally’s currently offers iGaming in New Jersey, Pennsylvania, Rhode Island and Ontario, while BallyBet sports betting operates in 13 jurisdictions.
Industry trend: Interactive outperforms as casinos stall
Bally’s earnings are always hard to parse, given the company’s penchant for transactions.
This quarter is no different. While Bally’s Casino and Resorts Q2 revenue was up 14.7% year-over-year, some of that was due to the company’s acquisition of four casinos from its Queen Casino and Entertainment merger on Feb. 7, 2025.
On a Pro Forma basis, the combined Bally’s and Queens casino revenue was down marginally for the first half of the year, compared to 2024.
In some respects, Bally’s results mirror the earnings trend reported by the industry at large. Online gaming is thriving, while brick-and-mortar casinos are taking a pause after their post-pandemic growth spurt.
For example, revenues for Flutter Entertainment, parent company of FanDuel and Betfair, were up 16% in the most recent quarter.
DraftKings grew revenues by roughly 37% in the second quarter. While MGM Resorts second quarter net revenues from its U.S. casino properties were flat compared to the same quarter last year, its revenues from MGM Digital – which includes BetMGM – were up 14.3%.
Likewise, Caesars Entertainment Q2 net revenues for its U.S. casino properties was essentially flat, when compared to the second quarter last year. Meanwhile, Caesars Digital grew revenues by roughly 24%.
Building uncertainty
Bally’s acknowledges there could be some softness ahead due to a cautious consumer.
Its Q2 report noted, “While the overall domestic regional gaming environment remained stable in the second quarter, we are mindful of the economic challenges consumers face.” But that hasn’t deterred the company from pushing ahead with its U.S. building plans.
“Construction is in full swing at our permanent gaming and entertainment destination resort in Chicago. The resort will feature approximately 3,400 slots, 170-plus table games, a 500-room hotel tower, 3,000 seat theater, ten food and beverage venues and a riverside public park,” said Reeves, when commenting on the company's permanent Chicago casino.
Bally’s is also hoping to land one of New York City new casino licenses.
The company currently owns a golf course in the Bronx, which it is hoping to rezone for its proposed $4 billion casino project. So far, the New York City Council rejected the rezoning of the property, but the mayor vetoed that vote. So, Bally’s is still in the running.
Bally’s is also considering building a casino on the site of a new MLB stadium in Las Vegas. While the Athletics have technically broken ground for the stadium, funding still may be an issue for the project.
Despite the brick-and-mortar headwinds, Bally’s is likely to push ahead with its building and acquisition plans. Aggressive growth has always been part of its corporate DNA. But now the company has a more dependable digital revenue stream to help offset some of the risks.
