Bally’s Corporation is exiting the online gaming business in Asia through a deal to sell its assets to management.
Bally’s has agreed to sell its interactive operations in Asia and certain other international markets to members of the management team of that business for an undisclosed amount
Under the terms of the deal, Bally’s will receive licence fees and royalties in exchange for the use of certain intellectual property that has been placed in trust and will be licensed to the buyer for an initial term of five years, with Bally’s also providing certain transition services to the business.
Beyond this, Bally’s will not be involved in the management, operations, or governance of the carved-out business.
Bally’s expects the transaction to have a modest negative impact on Adjusted EBITDA, which will be mitigated by cost actions to simplify Bally’s organizational structure and other cost reductions.
Shares in Bally’s Corp. (NYSE:BALY) closed 0.11 per cent higher at $17.47 per share in New York Friday.