Bally's, Sinclair announce 10-year sports betting and iGaming partnership

Bally's Corporation (BALY) and Sinclair Broadcast (SBGI) announced that they have entered into agreements for a long-term strategic partnership that combines Bally's vertically integrated, proprietary sports betting technology and market access footprint with Sinclair's portfolio of local broadcast stations and live regional sports networks, or RSNs, STIRR, its Tennis Channel and digital and over-the-air television network Stadium. Bally's and Sinclair will partner to create sports gamification content on a national scale, positioning Bally's as a gaming company with physical casinos and online sports betting and iGaming solutions united under one brand. The company said the transaction is expected to position Bally's to capture a significant share of the U.S. sports betting and iGaming market. Bally's will integrate content into the 190 television stations that Sinclair owns, operates or provides services to across 88 markets and its sports networks. The 21 Fox RSN brands will be rebranded using the Bally name. The Sinclair partnership. Over the 10-year term, Sinclair's RSN portfolio will receive annual naming rights fees and committed percentage of Bally's Interactive's marketing spend. The transaction includes Sinclair receiving warrants and options, subject to regulatory approval and other conditions, to own a minority stake in Bally's. Sinclair will receive penny warrants to acquire 14.9% of Bally's common shares as well as warrants to purchase up to a total of an additional 10% of Bally's common shares contingent on the achievement of various performance metrics. Sinclair will also receive options to purchase 5% of Bally's common shares in four tranches with purchase prices starting at $30 per share and escalating to $45 per share, exercisable after four years.