Bally’s Corp.’s chief executive officer-elect Robeson Reeves is committed to being a player in North American sports betting after reporting losses and charges related to the business there.
(Bloomberg) — Bally’s Corp.’s chief executive officer-elect Robeson Reeves is committed to being a player in North American sports betting after reporting losses and charges related to the business there.
“We are in for the long haul,” Reeves said in an interview. “We believe in having a global business.”
The Providence, Rhode Island-based casino operator said Monday that Reeves will replace current CEO Lee Fenton on March 31. Reeves, 39, said he’s evaluating whether to license sports-betting technology from others rather than trying to provide it in-house.
“Our sports technology isn’t as rich as other sports-technology options in the market,” he said. “We want to make sure we have the right foundation.”
As part of fourth-quarter results, Bally’s on Monday also announced an impairment charge of $390.7 million, primarily related to two US-based online gaming acquisitions, Bet.Works Corp. and Monkey Knife Fight, as part of a restructuring of its interactive unit announced in January. The company expects to lose $40 million to $50 million in its North American operation this year. Reeves called the results “unacceptable” in a statement.
The sports-betting market has been challenging even for established players like DraftKings Inc., which reports results on Feb. 16. Profit margins are slim and the cost to acquire customers is high. Some companies have sold or left the business, while others have cut back on marketing to try to reach profitability.
Read more: Sports betting faces shakeout amid cooling investor enthusiasm
In the fourth quarter, Bally’s earned $76.9 million from its casino businesses and $89.4 million in its international interactive segment, while losing $5.86 million in North American interactive.
Sales grew 5.3% to of $577 million and adjusted earnings before interest, taxes, depreciation amortization increased to $145.8 million. Both exceeded analysts’ estimates.
For this year, Bally’s forecast sales in the range of $2.5 billion to $2.6 billion and $660 million to $700 million in adjusted Ebitda before rent.
Reeves has run the company’s interactive division since October, 2021. He formerly served as chief operating officer of Gamesys, a UK-based online gambling business that merged with Bally’s in 2021. Reeves had worked at Gamesys since 2005, joining upon his graduation from University College, London, with a degree in statistics and management studies.
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