Bally's Casino in Pennsylvania Starts Strong in Online Gambling Launch

In the rapidly evolving world of online casinos, Pennsylvania has become a hotspot for operators vying for a slice of the lucrative market. One of the newest entrants, Bally's Casino PA, made a grand entrance in June of this year, and its initial performance has been nothing short of impressive.

With a well-established brand name and a significant retail presence, particularly in the neighboring Atlantic City, Bally's has set its sights on capturing a substantial market share in the Keystone State.

Bally's Casino PA wasted no time, hitting the ground running in Pennsylvania. Following a brief soft launch in June, the platform quickly transitioned to a full launch, catching many industry insiders off guard.

However, despite the relatively quiet entrance, the company's reported numbers have been more than enough to make some noise. During an earnings call, Bally's revealed some key statistics that underscored its triumphant Pennsylvania online casino debut:

• Gross gaming revenue surpassed $1 million within just 29 days.
• Handle exceeded an impressive $30 million within the same 29-day period.

These figures are noteworthy when compared to Bally's launch in New Jersey in December 2021. In the Garden State, the casino took 67 days to achieve $1 million in gross gaming revenue and 68 days to reach $30 million in handle. The stark difference in these metrics has led Bally's to confidently assert that the Pennsylvania launch is, in fact, their "most successful launch to date."

Robeson Reeves, the CEO, and Director of Bally's, expressed his satisfaction with the Pennsylvania launch during the company's earnings call. He attributed the solid start to Bally's established brand recognition and extensive player database, hinting that the company is only scratching the surface of its omnichannel player engagement potential.

Bally's impressive performance has not gone unnoticed by its competitors. The casino is already nipping at the heels of other well-established platforms like Unibet Casino and Wind Creek Casino, which reported June revenues of $2.5 million and $2.6 million, respectively.

Given Bally's rapid journey to its first $1 million in earnings, the platform will likely continue its ascent up the ladder of Pennsylvania's online casino market.

Bally's success in Pennsylvania online casino market was not a matter of chance. The company has been strategically planning its foray into the state, leveraging its experience and resources from New Jersey. With a 4% market share in New Jersey's online casino scene and aspirations to reach 6 to 8%, Bally's has tapped into its retail presence in the Garden State to bolster its online market share growth.

Interestingly, Bally's entered the Pennsylvania market without the backing of a physical retail location, which has been the norm for many operators seeking a foothold. The company's proposed land-based project near Penn State's campus has faced legal challenges and remains in limbo, forcing Bally's to build its Pennsylvania bettor base from scratch.

This unique situation underscores the importance of innovative product offerings and exceptional customer experiences in driving market share growth, with player retention emerging as the natural progression.

While Bally's managed to secure less than 1% of the market share in Pennsylvania in terms of June revenue, this is attributable mainly to its full launch taking place later in the month. The casino's Chief Financial Officer, Marcus Glover, elaborated on Bally's approach to gaining market share, emphasizing that it's not just about offering a wide range of games or sports betting options.

Instead, it's about harnessing data platforms to understand consumer needs and integrating those insights into a seamless product experience. Glover emphasized that this approach has historically driven growth across all of Bally's interactive businesses.

Zooming out to assess Bally's overall performance, the company reported robust Q2 2023 revenue of $606.2 million, marking a 9.7% year-over-year increase. This positive trajectory extended to various sectors within Bally's, even extending to the iGaming sector in North America. Although this department reported an $18 million loss, this figure represents an improvement over the $20.9 million loss from the previous year.

In terms of stock performance, Bally's has encountered a slight dip, with its stock price decreasing by 1.5% since the previous Friday's opening. Nonetheless, Zacks Equity Research remains optimistic about the company's prospects, indicating that Bally's stock has returned +6.6% over the past month compared to the Zacks S&P 500 composite's +1.5% change. The research firm assigned Bally's a Zacks Rank #3 (Hold), suggesting that the company could perform in line with the broader market in the near term.