That's a plus for the everyday grind of what it takes to operate these regional properties in a ferocious competitive environment. Nominally, Juliano reported to me, but he operated more or less like a free agent, having worked at the property as a player development host under my predecessor.īoth men are solid gaming veterans who bring complementary experiences and skillsets to the ongoing operation. CEO George Papanier was one of the financial types at the Trump casino organization in Atlantic City and Philip Juliano was a casino host at the Taj Mahal when I was Senior Vice President of Marketing there during the early nineties. Backgroundīack in the day, I worked with two of BALY's top executives. At all events, this is a leap of faith stock until then.

What we do like is the covetous strategy of its dominant hedge fund owner to see the company as a deal vehicle that eventually can be either merged or sold off to a larger competitor as the sector continues to consolidate. But they still face what we consider to be daunting odds against future growth independently.

To its credit, BALY acquired some properties at screaming bargain prices. But building its margins ever higher, it can become a cost leader, and that makes good sense. ( MCRI) (in Colorado, for example) to increase market share is problematical. Going head to head against both the big guys or even nimble, smaller cash machines like Monarch Casino & Resorts Inc. So, growing its share of market will be a tough crust of bread to chew.

The regional gaming sector is led by three multi-billion operators: Caesars Entertainment ( CZR), Boyd Gaming ( BYD), and Penn National ( PENN).Their properties are mostly located in the same markets in which BALY operates. The transition pricing is a bit muddy at the moment price-wise, so we will focus on the business model here. It is a portfolio comprised of castaways from big operators who for one reason or another saw them as marginal and not a key part of their future. The company has 9 properties in 5 states, with a 2019 annual revenue base of ~$529m under its former name, Twin River Worldwide Holdings Inc. With this article, we initiate coverage of newly renamed Bally's Corporation ( NYSE: BALY).

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