Bally’s could be given timely boost in wake of Las Vegas MLB vote

Article by : Charles Perrin Nov 21, 2023

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Bally’s could well benefit from the crunch MLB vote passed that gave approval to Oakland A’s relocating to Las Vegas, according to a financial analyst.

Yes, last week, MLB owners endorsed the decision for Oakland A’s to play their home games in Las Vegas from 2028 on the razed Tropicana site.

In anticipation of the vote, Bally’s insiders feasted on the previously flailing stock, and that included high-ranking executives Robeson Reeves and George Papanier, who swooped in earlier this month to snap up a combined 40,000 shares.

At the time, it proved to be a shrewd move with the share price experiencing a surge, but overall, it has slumped by 42% year-to-date.

Although there may have been an initial air of doom surrounding Bally’s prospects in Vegas, Macquarie analyst Chad Benyon believes Bally’s has been given a greater sense of “clarity” with how to proceed moving forward.

He said: “In our view, this is a positive development, as it provides clarity for BALY with regards to plans for the Tropicana, as BALY had operated not to implement operational changes until after the vote.

“We are holding our valuation for now, but overall we believe this solidifies a better runway to deleverage and grow the company.”

Bally isn’t short of options. The A’s move could see the casino and igaming giant build a fresh resort next to the new stadium or they could sell their existing lease on the Tropicana to a fellow gaming company.

It is thought that other casinos could profit from the MLB vote, including MGM Resorts International and Caesars Entertainment, and it could potentially provide a lift for the entertainment segment of Sin City.

Meanwhile, Bally’s hopes of developing a new casino in the Bronx, as we reported, have been put on ice following recent election results, with competition to land a coveted gaming license in New York extremely fierce.