Rock Island & Bally's Enter Agreement For $34 Million Upgrade

Rock Island & Bally's Enter Agreement For $34 Million Upgrade

As previously reported, International Game Technology's lottery division has been located in Rhode Island since GTech acquired it in 2014. Recently, both companies reached an agreement that will see IGT expand and maintain 1,100 employees there while investing $155 million into technology upgrades and joining Bally's for a $100-million expansion of Twin River Casino.

The Upgrade

International Game Technology has chosen to remain in Rhode Island and extend their long-term contract until 2043. This deal will enable IGT to expand its operations there, keep 1,100 people employed, invest $155 million into lottery technology upgrades and collaborate with Bally's on a $100 million Twin River Casino upgrade.

Major League Baseball has agreed to a multi-year partnership with BetOnline that promises an array of innovations for sports betting fans nationwide and beyond. This will include MLB's first multi-team sportsbook, live in-game scoring, and interactive content.

Additionally, IGT has signed a multi-year contract with the Rhode Island Lottery to provide them with an advanced video lottery terminal (VLT) system. This marks a huge step for the state as they have been dependent on IGT for decades to meet their gaming needs.

On a similar note, the company boasts the state's largest slot machine - not only in terms of size but also among all others in its class.

Though it does not own any casinos in Nevada, this company owns and operates 12 properties across eight states. Furthermore, it is an established online and mobile gambling operator with an impressive portfolio that includes one of the best casino apps around. With ambitious plans to open 15 casinos across 11 states after several acquisitions are completed, Diamond Entertainment Group plans on becoming a force in this space.

The Deal

In an effort to increase revenue and draw in more visitors to its casino, Rock Island has announced an agreement for a $34 million upgrade with new owners Bally?s. This development includes a sports betting lounge as well as renovations to hotel rooms.

Under the agreement, Bally's will also pay a $10.5 million annual rent for land surrounding Tropicana property. The deal is expected to close early next year.

Bally?s has achieved a major accomplishment with this transaction, expected to be its largest acquisition ever. It will enable the company to continue expanding and diversifying its product portfolio - an essential factor in creating long-term shareholder value.

The combination would create a dominant force in the rapidly expanding land-based and online gaming industries in the US, taking advantage of Gamesys' proven technology platform and experienced management team as well as Bally?s extensive expertise in iGaming and sports betting. With this combination, the Combined Group could seize all available opportunities within this rapidly developing market.

Gamesys' digital/interactive footprint offers a strong platform to expand into new markets, as does access to the growing iGaming and sports betting markets in key US states.

Both parties have conducted reciprocal due diligence as a necessary precondition to this Announcement, which is being made under Rule 2.7 of the Takeover Code.

According to this Announcement, Gamesys Shareholders will have the right to receive a fixed number of New Bally's Shares at an issue price of PS3.50 per Gamesys Share for an aggregate amount of PS690 million (including Consideration), if Bally?s or Premier Entertainment elect (with Panel approval if needed and subject to the terms of the Cooperation Agreement) to implement the Combination through a Takeover Offer.

The Consideration will be paid in cash as well as certain non-cash considerations. These non-cash items include the payment of Agreed Dividends in accordance with this Announcement, and if applicable, share alternatives where Scheme Shareholders resident or located within a Restricted Jurisdiction may elect to receive New Bally's Shares instead of part or all of the cash consideration due them under the Combination.

The Work

Rock Island is one of the region's premier gaming destinations. The city features a full-service casino, hotel and events center that offer various casino-style games like poker and blackjack. Furthermore, the property also has four restaurants as well as an aqua driving range and lakeside fire pit for added enjoyment.

On Monday, Rock Island city council unanimously approved a development agreement with Bally's to add a sportsbook and in-person lounge. According to Mayor Mike Thoms, this arrangement will help maximize their $34 million investment at the casino.

The new sports book will be situated within Bally's Sportsbook Lounge of the casino, created through a joint venture with Rhode Island Division of Lotteries. To fund construction of this sportsbook, the city of Providence will contribute $4.7 million over five years.

Bally's will become an official gaming operator for MLB and have access to official league and team marks, logos and data. Additionally, they plan on using these assets for content creation as well as integration into their growing selection of sports betting products.

Bally's will become a licensed video lottery terminal provider to the Rhode Island Division of Lotteries, providing all their video lottery machines. Starting July 1st, Bally's will own and lease 23% of these gaming floor machines in exchange for 7% of net terminal income generated from those machines.

By 2022, work on this project is expected to be complete. As part of its rebrand, Bally's Quad Cities Casino & Hotel will receive new interior signage as well as introduce their revolutionary Bally Rewards players club program. Furthermore, their exterior will boast new cards, dice, and gaming chips for added flair.

The Finishing Touches

Rock Island & Bally?s has had an incredibly busy year, which is no doubt why they sought out the best professionals for their $34 million upgrade. Highlights of the project include a new LED-lit facade, LED lights along the ceiling, and an advanced fire sprinkler system - just to name a few!

Though it may be hard to imagine, most of the hard work takes place behind the scenes. In reality, only those who frequent the property will truly see its results.

Over six months, a team of contractors, including an impressive construction firm and the city of Rock Island itself, worked tirelessly to transform a dilapidated hotel into an ultra-modern casino-hotel hybrid. Furthermore, the city's telecommunications department installed fiber optic network support for this ambitious undertaking as well as installing LED lit fountains, numerous new lighting fixtures, and other features that make this building truly standout among others.

The city's tourism department hopes that a shiny new casino will draw more visitors, ultimately benefitting local businesses as well.

The good news for the city is that they won't go broke. While all this will take a significant chunk out of their budget, the new casino will bring in tax revenue which will help cover some of those costs.