Bally’s Corp Submits Revised Offer to Buy WPT For $90 Million

Bally’s Corp
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  • Namita Ghosh March 18, 2021
  • 2 Minutes Read

US-based casino giant Bally’s Corp looks well on its way to pull the rug from under Element Partners’ acquisition bid for World Poker Tour (WPT)!

On March 5, Bally’s had made an unsolicited offer of $100 Million to acquire Allied Esports Entertainment, the parent company of the WPT. According to the latest updates, Bally’s submitted a revised proposal for WPT on Tuesday, offering $90 Million in an all-cash deal.

The casino major is essentially offering more money to acquire WPT since, under this revised proposal, Allied Entertainment gets to retain its Esports business. The counter-offer is significantly better than the $78.25 Million Element Partners agreed to pay Allied Esports for the WPT on January 19.

Bally’s latest offer has found favor with Allied Esports’ Board of Directors. Allied Esports came out with a press release the same day, announcing that its Board of Directors has found the revised proposal by Bally’s “superior” to Element’s stock purchase agreement. The company has not confirmed whether it will be entering a definitive agreement with Bally’s Corp to go ahead with the deal. It has, however, notified Element that it intends to terminate its stock purchase agreement unless Element comes up with a better offer by 5 PM (PT) on March 19.

 

Bally’s Revised Offer

Bally Corp’s first offer was an unsolicited proposal of buying out all the assets of Allied Esports Entertainment for $100 Million. Allied’s company board continued to recommend the agreement with Element Partners, prompting Bally’s to put up a plumper offer this week.

Bally’s caught the bait by offering to pay Allied Esports $90 Million for Allied’s subsidiary Club Services that owns the latter’s poker-related businesses, including the WPT. Under the revised proposal, Allied will retain its eSports assets.

The offer is significantly better than the January 19 stock purchase agreement Allied Esports entered with Element Partners. Element Partners would have paid up over three years; Bally’s offer is not only better-priced, but it is also an all-cash deal.

Underlining the same, Allied Esports in its press release stated: “Under the terms of Bally’s revised proposal, Bally’s would acquire all of the equity interests of Club Services, Inc. (“CSI”), an indirect wholly-owned subsidiary of the Company that directly or indirectly owns the Company’s poker-related business and assets, including the entities comprising the World Poker Tour® (“World Poker Tour,” or “WPT®”), for consideration totaling $90,000,000 in cash at the closing.”

 

What Makes the WPT a Lucrative Asset For Bally’s

The WPT is arguably one of the frontrunners in the global live tournament poker industry. After a sluggish 2020 that can be attributed to the COVID-19 pandemic, the brand has resumed its operations with gusto.

In January, the WPT hosted the WPT Lucky Hearts Poker Open in Hollywood, and more recently, the WPT Venetian (March 5 – 9).

Interestingly, of its three delayed final tables, the WPT Gardens Poker Championship took place at PokerGO studio in Vegas only a day after the WPT Venetian. The remaining two final tables, i.e., the WPT Borgata Winter Poker Open and the WPT LA Poker Classic, have been slotted for May.

The WPT will soon be returning to Asia-Pacific, with the WPTDeepStacks Hanoi (April 21 – 25) and the WPTDeepStacks Gold Coast (May 27- 31).

WPT is undoubtedly a gold mine for Bally’s Corp, formerly known as the Twin River Worldwide Holdings. The acquisition augurs well for WPT as well given Bally’s vast live presence in the US.

Element Partners has a reputation for investing in established high-growth companies. Even though Bally’s new proposal has found favor with Allied Entertainment, the possibility of a counter-offer by Elements Partners cannot be ruled out just yet.

Cover Image Courtesy: PokerNews

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