Bally’s Corporation could soon become the new owner of the World Poker Tour (WPT) as the company that currently owns it said Tuesday an offer tabled by the casino operator was superior to a bid recently made by a separate entity.
One of the world’s largest poker tours is owned by Allied Esports Entertainment, a global eSports and poker entertainment company. It recently entered into a stock purchase agreement with growth equity fund Element Partners, LLC.
After receiving Bally’s offer, Allied said Tuesday that its Board of Directors has determined that one constituted a “superior proposal.” The eSports company also informed Element Partners that it would terminate their pending agreement, unless they negotiate an amendment to that agreement that would better Bally’s bid until Friday, March 19.
The casino operator actually approached Allied with two proposals. Under the original one, Bally’s would have purchased the other company’s poker and eSports assets, including the WPT, for $100 million.
After discussions, Bally’s revised its offer and decided to only acquire Allied’s poker assets, including all entities comprising the World Poker Tour, for $90 million in cash. The casino company said that the new proposal better mirrored the structure of Allied’s stock purchase agreement with Element.
The eSports entertainment company noted Tuesday that there can be no assurance that it would eventually sell the WPT to Bally’s.
Bally’s Spree of Acquisitions
The Rhode Island-headquartered casino operator has had a busy year as it looks to grow its footprint in the US market and adapt its operations to the fast-changing local landscape that has seen multiple states legalize sports betting and digital gaming in recent years.
Bally’s, formerly Twin River Worldwide Holdings, rebranded last fall to signal its strategic realignment and a new chapter in its journey. The company also embarked on a spree of acquisitions that saw it significantly expand its physical footprint as well as scope of operations.
The first major acquisition was revealed by the operator in April 2020. Back then, it entered into an agreement with former Eldorado (now Caesars Entertainment Inc.) to buy Eldorado Resort Casino Shreveport in Louisiana and the Montbleu Resort, Casino and Spa in Lake Tahoe, Nevada for $155 million. It also announced a similar agreement with Caesars to buy Bally’s Atlantic City for $25 million.
Bally’s then secured access to the Illinois gambling market through the purchase of Jumer’s Casino & Hotel in Rock Island from Delaware North in a $120 million deal.
In October, the operator bought the Bally’s brand from Caesars for $20 million and rebranded the following month, also revealing plans to rename all its properties around the US to reflect its new identity.
It was in November again when the company bought sports betting technology firm Bet.Works for $125 million, signaling deeper interest in the fast-growing US wagering space. It also recently announced the acquisition of daily fantasy sports platform Monkey Knife Fight and social games company SportCaller.
Source: “Allied Esports Entertainment Board Determines Bally’s Corporation Revised Proposal Is Superior to Element Stock Purchase Agreement”, Business Wire, March 16, 2021
