Bally's Corporation announced a 4.7% decrease in total revenue for the first quarter of 2025, primarily due to the divestiture of its Asian interactive business at the end of 2024.
However, the company's main gaming divisions in North America and Europe continued to perform robustly, with significant growth in revenue from its casinos and resorts as well as the North American interactive division.
For the three months ending March 31, 2025, total revenue was $589.2 million, down from $618.5 million in the same period last year. The company noted that despite the overall decline in revenue, its core business still demonstrated strong momentum. Excluding the impact of the Asian business divestiture and licensing income, the revenue from international interactive business actually grew by 7.7% year-over-year.
The casino and resort division remains Bally's largest business segment, generating revenue of $351.2 million, up 2.6% from the first quarter of 2024. Adjusted EBITDAR grew by 6.3% to $95.1 million, benefiting from the acquisition of four regional properties through the purchase of Queen Casino & Entertainment. Despite weather-related challenges and increased competition in some regional markets, Bally's existing properties outperformed market growth in 7 out of 12 jurisdictions.
Revenue from the North American interactive business reached $44.5 million, a 12.5% increase year-over-year. This growth was driven by the integration of Queen Digital Business and the continued expansion of BallyBet and iGaming products.
The Queen Sports Betting platform BallyBet is now live in 11 states in the USA, while the iGaming business is active in New Jersey, Pennsylvania, Rhode Island, and Ontario. Notably, Rhode Island's digital business benefited from infrastructure disruptions impacting physical venue access, shifting more spending online.
The company's international interactive division generated revenue of $191.7 million, down 18.3% year-over-year, due to the sale of the division targeting the Asian market. Nevertheless, the UK market performed well, benefiting from high player retention rates and improved profitability, with revenue growth of 4.9% (5.6% on a constant currency basis).
With the easing of local advertising restrictions in Spain, the Spanish market also showed signs of growth. The division's adjusted EBITDAR totaled $77.1 million, down 7.7% year-over-year, but profitability remained attractive in core regulated markets.
Looking beyond the first quarter, Bally's has demonstrated its ambition for international expansion with a strategic investment of AUD 200 million in Star Entertainment Group.
Star Entertainment Group is an Australian casino operator with casinos in Sydney, Brisbane, and the Gold Coast. The investment was made in the form of convertible bonds and subordinated bonds, potentially giving Bally's a 38% equity stake. The initial AUD 67 million has been placed, with the remaining funds pending regulatory approval.
CEO Robeson Reeves remains cautiously optimistic about the performance for the remainder of the year, emphasizing the company's ongoing efforts to streamline operations and boost profitability across all divisions. He added that despite global economic uncertainties, Bally's gaming business remains stable and well-positioned to create long-term value for shareholders.
The company will continue to focus on strict capital deployment, operational integration, and strategic expansion in both domestic and international gaming markets.
