Bally’s to takeover Gamesys in £2bn deal

US casino group Bally’s says its takeover proposal of British online gaming company, Gamesys, has been agreed, paving the way for another multibillion dollar entity in the US market.

“The Gamesys board has indicated to Bally’s that it is minded to recommend the cash offer to Gamesys shareholders,” the US party said in statement in late March. It added that the acquisition of Gamesys and its leading digital brands, Virgin Casino and Jackpotjoy, would give it much needed online credentials as it expands into new online US markets. Gamesys would in turn “benefit from Bally’s fast growing land-based and online platform in the United States,” it said.

The £2bn price tag represents a 13 percent premium on Gamesys share price at the time. If completed, Gamesys chief executive Lee Fenton would lead the combined company, which will retain Gamesys operations in the UK, Japan and Spain.

Meanwhile the chair of Gamesys, Neil Goulden, said the deal was “about putting together someone with a lot of online capability and capacity with a US retail operator to really tap into what will become the biggest gambling market in the world”.

Bally’s currently runs 11 casinos across seven US states in addition to one horse racetrack and 13 betting shops in Colorado. However the group has been expanding its online division at pace thanks to the opportunities thrown up by new regulation.

It also acquired two other digital outfits in recent months including the daily fantasy sport website Monkey Knife Fight, the US sports betting platform Bet.Works which it acquired in November.