Under Kim’s leadership, Bally’s has expanded its footprint across multiple verticals, growing its land-based casino operations, making significant strides in digital gaming, and entering international markets.
The company’s strategic acquisitions and aggressive approach to expansion have positioned it as a key player in both traditional and online gaming.
Land-based strategy pays off
Bally’s expansion in the land-based casino sector has been largely driven by its ability to acquire undervalued properties and turn them into profitable assets.
The company has consistently sought out casinos that others considered unviable and revitalised them through operational improvements and regulatory collaborations.
An example of this strategy is the acquisition of Twin River, a casino in Rhode Island that was facing financial difficulties.
At the time of purchase, industry observers expected the casino to struggle due to increased competition from neighbouring Massachusetts.
However, Bally’s took a different approach, recognising that the state had a vested interest in the casino’s success due to its high tax rate on gaming revenues.
Instead of seeing the tax rate as a disadvantage, Bally’s worked with the state to implement measures that ed the casino’s profitability, such as 24-hour gaming, table games, and sports betting.
The result was a dramatic increase in cash flow, from an initial $50m to $140m, despite competition from larger casinos in Massachusetts and Connecticut.
This success laid the foundation for Bally’s to continue acquiring and improving casinos across the US.
The company now operates 19 land-based casinos and continues to explore additional acquisitions.
Digital expansion and the evolution of iGaming
Recognising the growing demand for online gaming, Bally’s has heavily invested in digital platforms. One of its most significant moves was the $3bn acquisition of Gamesys, a UK-based online gaming company.
This acquisition provided Bally’s with a well-established digital gaming presence in the UK and Spain, markets where online gaming has been legal and stable for years.
Unlike the US, where digital gaming is still developing, these markets have offered consistent growth and profitability.
Bally’s has leveraged Gamesys’ expertise in online casino operations to expand its digital footprint.
Unlike its land-based business, which relies on a unified brand strategy, its digital operations include multiple brands that cater to different customer preferences.The company has been working to integrate its online and land-based businesses, creating a seamless customer experience across both platforms.
This approach aligns with trends seen in other industries where physical and digital interactions are increasingly interconnected.
In the US, like many gambling operators, Bally’s has also ventured into sports betting. The company initially struggled in the competitive US market but remains committed to building a viable sports betting platform.
Despite investing approximately $250m into its North American online gaming operations, much of its revenue still comes from online casino gaming rather than sports betting.
However, Bally’s sees long-term potential in the sector and recently signed a deal with sports betting technology provider Kambi to enhance its offerings.
International expansion and strategic market positioning
Bally’s has positioned itself as a global brand, with aspirations to expand into more international markets. The company’s brand name has global recognition, which allows it to seamlessly enter new territories.
Its acquisition of Gamesys provided a foothold in Europe, and it has since continued to explore opportunities beyond the US and UK.
Bally’s has also made strategic moves to align itself with regulated markets, divesting from grey-market operations to focus on jurisdictions with clear legal frameworks.
One of the key elements of Bally’s international strategy is integrating its land-based and online operations.
The company recently acquired its first physical casino in Newcastle, UK, with the goal of using it as a customer acquisition and retention tool for its online gaming business.
and CEO of Spectrum Gaming Capital, Rob Heller, asked if Bally’s would continue to expand internationally, especially on the digital side. Kim responded without hesitation: “Absolutely. The nice thing about the word Bally’s, it translates to Bally’s in every language, you know?”
The ability to cross-market between physical and digital operations is expected to create long-term synergies.
Bally’s approach reflects a broader trend in the gaming industry, where companies seek to maximise customer engagement across multiple platforms.
Leadership and vision
Kim’s leadership has been instrumental in Bally’s growth. A seasoned investor with a background in turnaround strategies, Kim’s expertise lies in identifying undervalued assets and transforming them into profitable enterprises.
His early career in high-yield and distressed investing provided him with the skills to navigate complex financial situations, a talent that has been evident in Bally’s acquisitions and restructuring efforts.
Kim’s entry into gaming was initially opportunistic, as he recognised the vulnerabilities of highly leveraged casino companies during the 2008 financial crisis.
His early investments in casino debt led to direct ownership of properties, setting the stage for Bally’s expansion. Now, under his guidance and foresight, Bally’s has grown from a single distressed casino into a diversified gaming company with a global presence.
