Bally's soars as investors weigh the impact of the Intralot deal

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Bally's Corporation (NYSE:BALY [https://seekingalpha.com/symbol/BALY]) ripped a 23% gain on Tuesday to trade at its highest level since April. Investors have shown some recent confidence in the casino stock over the last two weeks following the completion of a transformative €2.7 billion deal with Intralot S.A. (OTCPK:IRLTF [https://seekingalpha.com/symbol/IRLTF]) (OTC:IRLTY [https://seekingalpha.com/symbol/IRLTY]) earlier this month, which provided substantial liquidity for the company.

The expectations are that the newly acquired liquidity will help Bally's (NYSE:BALY [https://seekingalpha.com/symbol/BALY]) reduce debt, accelerate major casino projects (especially in Chicago), and expand its digital and omni-channel gaming presence. Bally's (BALY [https://seekingalpha.com/symbol/BALY]) also became a majority shareholder in Intralot S.A. following the closing.

The deal with Intralot (OTCPK:IRLTF [https://seekingalpha.com/symbol/IRLTF]) (OTC:IRLTY [https://seekingalpha.com/symbol/IRLTY]) is seen by analysts as transformative for Bally's (BALY [https://seekingalpha.com/symbol/BALY]) which has been repositioning itself as a global digital gaming and interactive entertainment player. By integrating with Intralot’s established international operations and technology, Bally’s (BALY [https://seekingalpha.com/symbol/BALY]) expects to broaden its global reach and strengthen its digital platform, especially in regulated European and emerging markets.

Intralot (OTCPK:IRLTF [https://seekingalpha.com/symbol/IRLTF]) (OTC:IRLTY [https://seekingalpha.com/symbol/IRLTY]) is a Greek-based, publicly listed global gaming technology company that provides gambling systems, sports betting management, interactive gaming services, and omnichannel lottery solutions to state-licensed operators in over 39 countries. The company is best known for lottery modernization, digital transformation, and responsible gaming.

Bally's (BALY [https://seekingalpha.com/symbol/BALY]) is still facing pushback from lenders over proposed changes to its $1.9 billion debt package, with some concerns cited about future capital requirements for its casino projects.

MORE ON BALLY'S CORPORATION

* Bally's: High Debt, High Ambition In Las Vegas [https://seekingalpha.com/article/4826685-ballys-high-debt-high-ambition-in-las-vegas]
* Bally's: Deleveraging To Leverage Again [https://seekingalpha.com/article/4817951-ballys-deleveraging-to-leverage-again]
* Bally's Corp: BALY's Debt Rallied, We Increased Our Position [https://seekingalpha.com/article/4809861-ballys-corp-structural-gaps-create-a-debt-opportunity]
* Deutsche Bank delays Bally's bid to amend term loan - report [https://seekingalpha.com/news/4505666-deutsche-bank-delays-ballys-bid-to-amend-term-loan---report]
* Bally’s increases revolver credit facility commitments to $670M [https://seekingalpha.com/news/4500155-bally-s-increases-revolver-credit-facility-commitments-to-670m]