Bally’s Corporation has entered into a definitive agreement with Intralot, in which the Athens-listed gambling group will acquire Bally’s International Interactive business and push to become a global iGaming champion.
After assumptions of certain liabilities by the involved parties, the transaction is set to be a cash-and-shares deal worth €2.7bn – €1.53bn in cash consideration and €1.136bn in newly issued shares in new Intralot (873,707,073 shares at an implied value of €1.30 per share).
As part of the transaction, Bally’s CEO and board member, Robeson Reeves, has been named the new Intralot CEO, as the company is expected to refinance part of its existing debt facilities, while Bally’s is expected to repay secured debt from the cash proceeds.
Subject to certain Intralot shareholder approvals, customary antitrust and gaming regulatory approvals and other customary closing conditions, the deal is expected to be completed in the fourth quarter of 2025.
“This transaction marks a transformative moment for Bally’s as we unite our outstanding gaming and data technology with Intralot’s exceptional expertise in lottery,” commented Reeves.
“Together, we are creating a unique proposition that will pave the way for a new era of innovation and growth across the entire gaming spectrum.”
Bally’s and Intralot believe the deal will create a “global iGaming and lottery champion”, combining Intralot’s lottery business with Bally’s international iGaming operations to have a presence in several European and North American markets, with Intralot benefiting from Bally’s position in online casino markets such as the UK.
In 2021, Bally’s bolstered its online portfolio through a £2bn acquisition of Gamesys Group, securing ownership of brands such as Jackpotjoy, Vera&John and Virgin Games, while laying the groundwork for its BallyBet launch in Ontario.
It is forecasted by the two companies that the merger of Bally’s sustainable iGaming revenue in the UK will complement Intralot’s more than €1.4bn in contracted lottery revenue through 2029, producing an enhanced aggregated financial profile with €1.1bn revenues, approximately 38% presynergies EBITDA margin and strong operating free cash flow conversion above 90%.
The transaction will also see the integration of Intralot’s LotosX, PlayerX systems with Bally’s International Interactive’s Vitruvian data analytics platform to form a new technology stack offering platform enhancement, loyalty program integration, data-driven marketing and real-time customer insights.
Alongside Reeves, current Intralot CEO and board member, Nikolaos Nikolakopoulos, is expected to serve as President and CEO of Intralot’s lotteries division, while Intralot Deputy CEO and board member, Chrysostomos Sfatos, will become Intralot’s CFO.
“Intralot takes a major step forward in becoming a global technology and services leader in the Lottery and Gaming sectors,” stated Nikolakopoulos.
“Bally’s brings unparalleled digital capabilities, technological and operational, giving us a unique advantage in helping State Lotteries enhance player experiences and maximise returns for good causes.”
As for the new entity’s board following the transaction, Intralot has said it is “expected to undertake any necessary corporate actions required by Greek law to cause the Intralot board of directors following the completion of the Transaction to comprise 11 directors, a majority of whom will be independent”.
Intralot’s founder and current Chair, Sokratis Kokkalis, as well as Bally’s Chair and Vice Chair of Intralot’s board, Soohyung Kim, will be part of the board, with Reeves and Nikolakopoulos expected to serve as directors too.
Kim commented: “This is a tremendous statement of intent that signals Bally’s strong commitment to establishing a global lottery and online gaming champion. By joining with Intralot, the resulting company will be anchored in Europe, and will have significantly greater financial scale from which to drive growth and compete on a global basis.”
Once the transaction is completed, Intralot is expected to keep its listing on the Athens Stock Exchange, with Bally’s – its current largest shareholder – to become its majority shareholder with a notable equity stake and Kokkalis to maintain his significant stake.
The joint statement read: “Bally’s and its affiliates’ ownership in Intralot has increased from 26.86% to 33.34%, following which a mandatory tender offer obligation for the remaining outstanding shares of Intralot has been triggered.”
Intralot has gained commitments from Citizens Bank, Deutsche Bank, Goldman Sachs, and Jefferies for debt financing up to €1.6bn to support the €1.53bn cash consideration.
Subject to corporate and regulatory approvals, the company also expects to go ahead with a share capital increase by up to €400m “by way of an equity offering of shares listed on the Athens Stock Exchange”.
Forecast to be completed in Q4 this year, Bally’s has secured commitments for a $500m secured debt facility in connection with the transaction, which will be used to repay secured debt alongside cash proceeds from the merger deal.
Bally’s noted that it has “secured commitments for a $100mn delayed draw secured debt facility, which may be used following the consummation of the transaction for general corporate purposes, including the development of Bally’s Chicago”.
Kokkalis added: “The transaction we announced today marks a doubly important day: On the one hand, for Intralot, which is growing with the acquisition of the online division of Bally’s International Interactive, creating a company with significant multiples in operating profits and unlimited space to expand into online gaming.
“It is also a special day for me personally to see the company I founded 33 years ago in Greece and which has become one of the top three companies in the lottery technology industry worldwide through its technology innovation and dynamism, acquiring new vision and prospects. Finally, I would like to thank Mr. Kim for his commitment to our partnership.”
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