Key points:
- Total revenue fell 4.7% year-on-year to $589.2m after divesting Asia-facing online business
- Casinos & Resorts and North America Interactive segments delivered positive growth
- AU$200m (US$133m) investment in Star Entertainment signals further international gaming ambitions
Bally’s Corporation has reported a 4.7% drop in total revenue for the first quarter of 2025, driven primarily by the divestiture of its Asia interactive business in late 2024.
However, the company’s key gambling divisions in North America and Europe continued to perform solidly, with notable revenue growth in both its Casinos & Resorts and North America Interactive segments.
Total revenue for the three-month period ending 31 March 2025 stood at $589.2m, down from $618.5m in the same period last year. The company noted that while headline figures were lower, the core business continued to show underlying strength. Excluding the impact of the divested Asia operations and licensing revenue, International Interactive revenue actually grew by 7.7% year-on-year.
The Casinos & Resorts division, which remains Bally’s largest segment, posted $351.2m in revenue, representing a 2.6% increase from Q1 2024. Adjusted EBITDAR rose 6.3% to $95.1m, boosted by the addition of four regional properties acquired through the Queen Casino & Entertainment transaction. Despite weather-related challenges and increased competition in some regional markets, Bally’s legacy properties outperformed market growth in seven of twelve jurisdictions.
In the North America Interactive segment, revenue reached $44.5m, up 12.5% year-on-year. This improvement was supported by the integration of Queen’s digital operations and the ongoing expansion of BallyBet and iGaming offerings. BallyBet, the firm’s sports betting platform, is now live in 11 states, while iGaming operations are active in New Jersey, Pennsylvania, Rhode Island and Ontario. Notably, digital performance in Rhode Island benefitted from infrastructure disruptions that impacted access to land-based venues, with more spend redirected online.
The company’s International Interactive segment reported $191.7m in revenue, down 18.3% year-on-year due to the sale of the Asia-facing division. Still, UK performance remained a bright spot, with revenue rising 4.9% (5.6% in constant currency) thanks to high player retention and improved monetisation. Spain also showed signs of growth following the easing of local advertising restrictions. Adjusted EBITDAR for the segment totalled $77.1m, reflecting a 7.7% decline, though margins remain attractive in core regulated markets.
Looking beyond Q1, Bally’s has signalled its ambitions to grow internationally through a strategic AU$200m investment in Star Entertainment Group, an Australian casino operator with properties in Sydney, Brisbane and the Gold Coast. The investment, structured through a convertible note and subordinated debt, could eventually give Bally’s a 38% equity stake. An initial AU$$67m has already been funded, with the remainder subject to regulatory approvals.
Chief Executive Robeson Reeves expressed cautious optimism for the remainder of the year, highlighting ongoing efforts to streamline operations and drive margin improvement across all segments. He added that despite global economic uncertainty, Bally’s gambling operations remain stable and well-positioned for long-term shareholder value creation.
The company will continue to focus on disciplined capital deployment, operational integration, and strategic expansion in both domestic and international gambling markets.
