Bally’s Corp. is finally ready to start rolling out its new Bally Bet platform, but it will continue to wade slowly into markets.
Bally Bet launched its newer sports betting in Arizona and New York, but Bally’s CEO Lee Fenton said on Thursday’s second-quarter earnings call the focus will be on iCasino states moving forward. The company also is still working on enhancements before launches to ensure it can cut through the noise.
“The product isn’t exactly where we want it today,” Fenton said on the call. “The sports product is live in Arizona and New York, but we haven’t been heavily spending behind or pushing hard because we want a few more improvements.”
For the quarter, Bally’s had revenue of $552.5 million, with a net income of $59.5 million.
Road map for Bally Bet growth
Bally’s is not looking to spend heavily on marketing to secure market share, according to the call. Instead, it will create state-specific plans and continue working on its product to stand out from competitors.
Fenton said the Bally’s player funnel is unique and the company will continue to leverage it to optimize and minimize player acquisition costs. In its investor presentation, a slide reads “Get it right then invest, NOT invest then get it right.”
“What comes next? We’re focused on product, developing a blueprint on a state-by-state basis,” Fenton said. “We want to focus on development and blueprints rather than an aggressive rollout.
“We have a lot more product and a lot more omni to develop over the next 12 months.”
New Jersey the current Bally’s focus
The second quarter was Bally’s third after acquiring Gamesys. Together with its Bet.Works acquisition, Fenton is confident the Bally’s product can begin to surge in the US sports betting and online gaming ecosystem.
The company is focusing on its iGaming offering in New Jersey, where it holds approximately 3.5% market share. Fenton believes they can reach between 6-8% by next year and should add online sports betting soon.
“It is an aggressive target, but we’re going for it,” he said.
iCasino takes priority for Bally Bet
With more revenue potential, Bally’s is looking toward iCasino markets for its immediate growth. Bally’s launched a web-only product in Ontario, and expects it to be the first market with a combined iCasino and sports betting product later this year.
“We’re going to lean heavily in iGaming states, where it’s live today or ones we believe have a high chance of legislation in the next couple of years,” Fenton said.
Illinois will be a focus, as Bally’s was awarded the downtown Chicago casino project in May. The property will be a flagship, according to executives, and a key piece of their player funnel.
Top-of-funnel assets important to Bally Bet
The company is working to improve its sports betting offering to compete against other operators working to do the same, as Caesars announced during its recent call. Bally’s also is working to ensure its full ecosystem is in a good place.
Fenton said there is still room to grow its Bally Sports RSN. The partnership with Sinclair has generated 100,000 free-to-play users, according to the call.
The pair is now working together on a watch-and-bet product that Fenton said, “will further develop strategy and keep cost of acquisition down.”