Bally’s Corp. has reached an agreement in principle to buy U.K. online gaming and gambling platform Gamesys Group Plc in a deal valued at 2.02 billion pounds ($2.7 billion) in the latest move by a U.S. casino operator to expand into digital betting.
Bally’s will pay 1,850 pence per share in cash for the company, it said in a statement on Wednesday. That’s a 13% premium from Gamesys
Gamesys would benefit from Bally’s fast-growing, land-based and online platform in the United States, providing market access through Bally’s operations in key states, as the nascent iGaming and sports betting opportunity develops in the US,” according to the SEC filing.
“Bally’s would benefit from Gamesys’ proven technology platform, expertise, and highly respected and experienced management team across the online gaming field. The combined group would be well-positioned to capitalize on the full range of opportunities present both in the US and beyond,” the SEC filing continued.
Bally’s is one of the most active gaming companies in terms of consolidation. It is likely eyeing Gamesys as an avenue for pushing deeper into the fast-growing world of online casinos. Under the Jackpotjoy, Virgin Games, Botemania, Vera & John, Heart Bingo, Megaways, Rainbow Riches Casino, and Monopoly Casino brands, the UK-based company offers internet casino and online bingo games.
On Tuesday, Goldman Sachs forecast the US iGaming market will be worth $14 billion in 2033, delivering a compound annual growth rate (CAGR) of 27 percent for over a decade. Jefferies analyst James Wheatcroft said in a note to clients today that there are synergies between Gamesys and other recent Bally’s acquisitions.
“Pursuant to the UK Code, Bally’s has until April 21, 2021, subject to extension, to either announce a firm intention to make an offer for Gamesys in accordance with Rule 2.7 of the UK Code, or announce that it does not intend to make an offer,” according to the 8-K.