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The Reasons for Opting Out

Even though Bally’s Atlantic City is one of Caesars’ flagship hotels located within the borders of the state, the resort lacks a Bally’s-branded online casino site. This situation is all the more confusing due to the fact that the company has already received two separate New Jersey gambling licenses.

One of those licenses has been issued for the Bally’s/888 partnership, while the other one has been granted for the Caesars’ online property. While a dedicated online Bally’s site appears unlikely, Caesars Entertainment has already launched a number of online casinos under the Bally’s license, which include Harrahs Online Casino, WSOP.com Online Poker, as well as an 888-branded New Jersey operation.

Furthermore, it is worth pointing out that Caesars affiliated sites have been fairly successful in financial terms, as their combined revenue reached consistently reaches $3 million per month, and occasionally reaches $4 million.

Any hypothetical Bally’s site would most likely be powered by 888 software, which hasn’t been the best performer in the NJ online casino market. Thus, Caesars Entertainment might be unwilling to introduce yet another casino site based on this platform, especially now that the market is flooded with top-flight sites.

All in all, the only thing that remains certain at this point in time is the fact that a Bally’s-branded online casino hasn’t been mentioned in any of the official press releases dealing with the company’s activities on the New Jersey’s new internet gambling market.

Bally’s Casino

With almost 2000 rooms, Bally’s Atlantic City is one of the largest hotel and casino resorts located in the New Jersey area and is currently owned by Caesars Entertainment. The resort was built by Bally Manufacturing after the company demolished the Marlborough-Blenheim Hotel and opened in 1979 as Bally’s Park Place.

The first casino at Bally’s was opened in the adjacent Dennis Hotel building – but the total gaming space was expanded in 1997 with the addition of the Wild Wild West Casino at Bally’s.

As a result, the total size of casino floor exceeds 225,000 square feet with over 5000 slot machines and numerous traditional casino games such as Keno, roulette, baccarat or blackjack.

Bally’s Atlantic City used to have an additional lounge-casino located in the Claridge Tower, but the tower has been sold in 2013 to be reopened as a separate hotel. All in all, the resort has been renovated four times in 1983, 1994, 2005 and 2009, which shouldn’t be all that surprising if you consider the fact that both Claridge Tower and Dennis Tower are over 80 years old.

Twin River Worldwide Holdings (TRWH) is moving forward with the purchase of Bally’s Atlantic City.

But in order to complete the pending sale, the pending owner needs the approval of the New Jersey Division of Gaming Enforcement (DGE).

This remains a work in progress.

On May 26, the RhodeIsland-based company filed a petition with the DGE. This would be for interim casino authorization to own and operate the Atlantic City property. And that’s where it sits for now.

But once approved, Bally’s will be separated from Caesars Entertainment’s New Jersey casino portfolio.

Twin River will be in a position to make much-needed capital upgrades. The property celebrated its 30th anniversary on Dec. 29, 2019.

More importantly, the new owner is gaining access to the NJ sports betting and NJ online casino markets. As a new entity in the AC market, it can apply for online gambling licenses.

So here’s the $25-million-dollar question: What exactly could Twin River have planned for Bally’s once they are approved for a license?

The new owner of Bally’s has yet to share details of its NJ online gaming plans. Let the guessing game begin.

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Twin River + Bally’s Atlantic City

Here’s what we do know: The Book at Bally’s is Atlantic City’s largest sportsbook. But once the transaction closes, Caesars will maintain ownership.

The 15,228-square-foot space is part of the Wild Wild West Casino. It’s considered the annex between Bally’s and Caesars, and the latter is keeping it, too.

The soon to be ex-sister properties will remain connected once the sale closes, even if the sportsbook remains under Caesars’ umbrella.

On the mobile side, Caesars Sportsbookand 888 Sportbook (and all of the sister casino sites) will continue to operate under the Caesars Interactive license.

Twin River, therefore, will be entering the NJ online gambling market with a fresh set of eyes.

The company will have the option of launching three online sportsbook skins under its license. And the door to NJ casino apps is wide open, too.

NJ online gaming possibilities for Bally’s new owner

The most likely scenario is launching a Bally’s-branded app. The name is one customers are familiar with and have been for the past 30 years.

Plus, the eight other Atlantic City casinos each have at least one casino app matching their land-based name. And for the most part, the name recognition works in their favor. For example, Golden Nugget online casino is the most profitable of online casinos in New Jersey.

There are a lot of reasons for that, but its name certainly plays a part.

Launching an integrated sportstbook/casino app with the Bally’s name is a no-brainer.

To start, Twin River would need to ink a deal on the technology/software side. Here are a few possibilities:

• Scientific Games
• SBTech
• GAN

The three companies currently have a presence in the Atlantic City market and are approved to operate in New Jersey. It would be an easy move for Bally’s to partner with one of them and get the ball rolling.

Secondly, Bally’s would need to partner with a sportsbook operator to run its self-branded site. Here, the field is wide open again, but there are some newcomers looking for a bite of the AC market:

Carousel Group is reportedly close to finalizing a deal. And it’s rumored to be with an Atlantic City casino.

Betway Sportsbook is another name looking to gain NJ access. Betway has a casino product, too.

The European company has yet to launch in the United States.

What about a FanDuel Sportsbook in Atlantic City?

When it comes to NJ sports betting, FanDuel Sportsbookis king. The brand operates under the Meadowlands Racetrack license with a profitable sportsbook next to an NFL stadium.

However, a new casino operator looking to make its retail sportsbook an attraction (once social distancing guidelines are loosened) may be interested in partnering with a big name.

Hypothetically speaking of course.

But it may not be as crazy as it sounds, and here’s why.

If FanDuel and Bally’s make a deal, it would give FanDuel a landing spot in the AC casino market. This is where eight of the 10 retail sportsbooks currently exist.

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After losing arguably the best book in town, Bally’s could generate foot traffic with a FanDuel retail sportsbook. NFL betting customers will likely see a temporary retail area first.

And from a FanDuel perspective, operating under more than one partner/license is no biggie.

William Hill has partnerships with Tropicana Atlantic City, Ocean Casino Resort, and Monmouth Park. And while William Hill has one online site in the Garden State, it has three retail sportsbooks.

In Pennsylvania, FanDuel opened a sportsbook at Valley Forge Casino. Additionally, another one at Live! Casino & Hotel is coming soon.

Whatever the plans end up being, Twin River will need to reconfigure the casino floor at Bally’s.

The numbers don’t lie in online gambling

Retail betting aside, it’s hard to imagine Twin River not wanting a slice of the country’s hottest online gaming market.

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In April alone, New Jersey online operators posted a record $80 million in revenue. And NJ online gambling revenue has yet to see a month-over-month decline since its inception back in 2013.

While Twin River will be entering the market late, there’s no reason to think it can’t make its mark and enjoy a slice of the pie. A small slice is still a lucrative one in the end.

Next step for Twin River? A license

The next Casino Control Commission meeting is taking place Wednesday.

The Bally’s sale and licensing are not included on the agenda.

Whatever date the hearing does take place, Twin River’s plans for this aging property will likely be discussed. It is hard to imagine no improvements at Bally’s Atlantic City.

But the way we see it, getting a license is simply the first step to a much bigger plan.