The newest Pennsylvania online casino has hit the ground running in the Keystone State. Bally Casino PA launched as the state’s 20th platform in June, and reported a stellar start in PA during the company’s Q2 2023 earnings call.
With a strong brand name and retail presence, especially in nearby Atlantic City, Bally’s is expecting to contend for significant market share in Pennsylvania.
Bally online casino PA announces ‘most successful launch to date’
After conducting a three-day soft launch in June, Bally Casino fully launched shortly after without providing an announcement.
As under the radar as the market entrance seemed to be, the company is reporting strong numbers out of the gate. In a presentation made available for investors, Bally’s reported some key statistics in a successful Pennsylvania launch:
Recorded $1 million in gross gaming revenue by day 29
Recorded $30 million in PA handle by day 29
Bally’s launched online in New Jersey in December 2021 and did not reach $1 million in gross gaming revenue until day 67. It also did not reach $30 million in NJ handle until day 68, which is why the operator stated that “all metrics point to PA being our most successful launch to date.”
Robeson Reeves, Bally’s CEO & Director, commented on the PA launch during its earnings call:
“While it’s still quite early, we are pleased with the initial results. We believe our early performance in PA is a result of strong brand recognition and database. We are only scratching the surface of our player database omnichannel opportunities.”
Bally’s is already nipping at the heels of Unibet Casino and Wind Creek Casino, which reported $2.5 million and $2.6 million, respectively, in June revenue. While only taking 29 days to record $1 million in earnings, it should be a tell that Bally’s will be climbing in the PA online casino ladder in the coming months.
How far it climbs remains to be seen.
Bally’s plan to grow Pennsylvania online casino market share
Bally’s currently operates an online casino in New Jersey, holding 4% of market share, with a goal of reaching 6 to 8%. Bally’s has the luxury of having a retail presence in the Garden State, and using that database to grow online market share.
Entering the state with an approved QGE application from the Pennsylvania Gaming Control Board (PGCB), Bally’s launched within the market without a retail location. The operator’s land-based project, near Penn State’s campus, is in the midst of a series of lawsuits and has not broken ground. Bally’s cannot fall back on the same customer base it already has in New Jersey, essentially starting from scratch.
As many operators have discussed in previous earnings calls, product innovation and customer experience is what drives market share, with retention as the next step.
June revenue for Bally Casino reported less than 1% market share in PA, which is understandable since the operator did not fully launch until after the first week of the month.
Bally’s CFO, Marcus Glover, explained the approach of how the product helps gain market share:
“It isn’t just about having a sports betting offering or the most games available. It’s actually about how you utilize your data platforms. Our essence is about how we can analyze, understand the consumer needs, test and integrate that into a product experience. That is the true capability, and that’s what’s driven growth historically for all of our interactive business.”
Bally’s Q2 2023 performance and stock update
The company reported Q2 revenue of $606.2 million, showing a 9.7% year-over-year increase.
The rest of Bally’s sectors saw an increase in revenue from the year prior, even the iGaming side in North America. While that department reported an $18 million loss, it’s an improvement from the $20.9 million loss from last year.
Despite Bally’s stock price sitting at $14.97, a slight 1.5% decrease since Friday’s open, Zacks Equity Research estimates that the company is in good position:
“Shares of Bally’s have returned +6.6% over the past month versus the Zacks S&P 500 composite’s +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.”