Bally's Corporation reported its Q2 2022 results today, featuring revenues that were nearly double of Q2 2021, but Bally’s North America Interactive — the division covering legal sports betting — didn't grow quite as much.
North America Interactive, which includes Bally Bet, reported a 16% growth in revenue, hitting $18 million this quarter vs. $15.2 million in Q1.
Lee Fenton, Chief Executive Officer of Bally's Corp., noted that these earnings show "continued growth in our North America Interactive segment."
North America Interactive also handles the iGaming, free-to-play gaming, poker, and daily fantasy sports platforms. Even though this division grew, its net income was still negative: Bally's Corp. reported that North America Interactive posted a Q2 loss of $24.8 million, just slightly better than Q1's loss of $25.3 million.
The losses have not deterred Bally’s from expanding its presence as sports betting grows. They recently partnered with the Cleveland Browns in anticipation of sports betting in Ohio (which is set to start at 12:01 on January 1), plus they are also aligned with the New York Yankees, joining FanDuel as the team’s official betting partners.
Bally Bet currently operates in Arizona, Colorado, Indiana, Iowa, New York, and Virginia.
Bally’s gaming sector stays strong vs 2021
Overall revenue may have barely risen, but the Rhode Island company’s net income jumped dramatically from $1.9 million in the first quarter of 2022 to $59.5 million this quarter. Adjusted EBITDA also rose from $115 million to $141.2 million.
Bally’s gaming sector's revenue, including their casino and resorts, actually fell about 2% this quarter, but compared to 2021, it has done well — revenue doubled in Q2 vs. 2021 ($455 million vs. $207 million) and H1 revenue was even better, jumping from $362 million to $918 million.
On the expense side, Bally’s gaming sector cut its costs this quarter but it's still significantly higher when looking at 2021. Costs hit $204 million in Q2 vs. $63.3 million the year prior, with first-half costs nearly quadrupled — from $110.6 million in the first half of 2021 to $423.2 million this year.
The growth numbers in 2022 are not surprising, however, as Bally’s — and the entire industry — have spent so much effort in market acquisition in what is still the early stages of regulated sports betting in the U.S.
Bally's executives reiterated on Thursday's call that revenues are not the singular focus, rather there is a priority put on “getting into the right markets at the right depths.”