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Read Full BioGreece-based Intralot will acquire Bally’s Corporation’s International Interactive Division for €2.7 billion ($3.18 billion) in a move that will give Bally’s a significant financial injection while expanding Intralot’s digital footprint.
Intralot provides lottery, betting, and gaming solutions, including technology and facility management services for 12 state lotteries in the US. Through the deal, Intralot will expand its presence in the UK online gaming market. It will also enhance its technology offerings by incorporating Bally’s digital platforms.
Meanwhile, Bally’s will receive a substantial cash injection to support its ongoing projects and alleviate concerns about debt among analysts.
The deal also represents a profit for Bally’s. The company initially acquired Gamesys (now its International Interactive division) for $2.7 billion in 2021. Investors have long called for Bally’s to offload Gamesys to unlock value and focus on US expansion.
The transaction is expected to close in Q4 2025, pending regulatory and shareholder approvals.
Bally’s to Become Majority Shareholder in Intralot
The cash-and-shares transaction will include a €1.530 billion cash consideration ($1.8 billion). It will also include €1.136 billion ($1.34 billion) in new Intralot shares (approximately 873.7 million shares at implied value of €1.30 each).
To secure the deal, Intralot has secured commitments of up to €1.6 billion ($1.88 billion) from Citizens Bank, Deutsche Bank, Goldman Sachs, and Jefferies.
Additionally, the company plans to raise up to €400 million ($471 million) in equity through a public offering on the Athens Stock Exchange.
After the transaction’s completion, Bally’s and its affiliates’ ownership in Intralot will increase from 26.86% to 33.34%. That will shift Bally’s from Intralot’s largest shareholder to its majority shareholder.
The transaction will also bring significant leadership changes at Intralot. Robeson Reeves, the current CEO of Bally’s, will also become the CEO of Intralot. Nikolaos Nikolakopoulos, the current CEO of Intralot, will transition to President and CEO of the Lottery division.
Additionally, Chrysostomos Sfatos, Intralot’s current Deputy CEO and board member, will serve as Intralot’s CFO.
Moreover, the Intralot Board of Directors will expand to 11 members. The majority will be independent, with the addition of Sokratis Kokkalis (Intralot Founder and Chair), Soohyung Kim (Bally’s Chair and Deputy Chair of Intralot), Reeves, and Nikolakopoulos.
The combined entity projects to generate approximately €1.1 billion in revenue, with a pre-synergy EBITDA margin of around 38%, and over 90% free cash flow conversion. Intralot targets approximately 2.5x net leverage and a dividend payout of about 35% of net income, with upside flexibility.
Deal Will Support Bally’s Finances and Expansion Plans
In connection with the transaction, Bally’s has secured commitments for a $500 million secured debt facility, which, together with the cash proceeds, will be used to repay secured debt. In addition, Bally’s has secured commitments for $100 million delayed draw secured debt facility, which will be used for general purposes, including the development of Bally’s Chicago.
The Chicago $1.7 billion flagship project, along with other ambitious plans by the company, has raised concerns among analysts regarding the company’s financial standing.
Bally’s Chicago is under construction, racing to meet Illinois’s mandatory September 2026 opening date. The project faced financial uncertainties for some time. Then, Gaming and Leisure Properties stepped in and committed $940 million to its construction, effectively saving it.
Bally’s is also part of a high-profile bidding war for one of three downstate New York casino licenses. The company’s $4 billion Bronx proposal is one of eight bids, with two existing racinos seen as frontrunners.
Furthermore, Bally’s has plans for a Las Vegas casino-resort at the former site of the Tropicana Las Vegas through a partnership with Gaming and Leisure Properties and the Oakland A’s, who are building a ballpark adjacent to the Bally’s property.
Despite these ambitious projects, Bally’s financial health has raised concerns among analysts. As of April, Bally’s carried around $3.4 billion in debt, while its market cap is around $500 million. The total debt-to-equity ratio has caused multiple downgrades to sub-investment-grade status.
Even after a 15% jump in the stock price after the Intralot announcement, Bally’s shares are down over 40% year-to-date. It’s also down 52% from its 52-week high.
Nevertheless, the over $2 billion Bally’s will use from the transaction cash proceeds and secured debt facility should provide critical financial flexibility. It will also strengthen Bally’s balance sheet as it pursues its aggressive expansion strategy.
