Slide 1: Bally's Corporation Q4 2020 Earnings
Bally's Corporation Q4 2020 Earnings March 4, 2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Bally's Corporation, may be referred to in this investor presentation as "the Company" or "Bally's." This presentation includes forward-looking statements within the meaning of the securities laws. Forward-looking statements are statements a
Slide 3: I. Company Overview
I. Company Overview
Slide 4: Bally's Vision
Bally's Vision To become the premier, truly integrated, omni-channel U.S. gaming company with a B2B2C business 4
Slide 5: Bally's has focused on creating long-term strategic value
Bally's has focused on creating long-term strategic value Key Strategic Objectives Accomplishments Evolving from single property operator in 2013 to the operator of 15 casino properties across 11 states(1) Acquired Hard Rock Biloxi (2014), Newport Grand (2015), Dover Downs (2019), three Black Hawk p
Slide 6: II. Bally's Casinos
II. Bally's Casinos
Slide 7: Bally's Casino Overview
Bally's Casino Overview Bally's Corporation (“Bally's”) is a diversified, multi-property gaming company that continues to improve its scale and geographic diversification through strategic M&A Following the completion of pending acquisitions, Bally's will own and manage 15 casinos across 11 states(1
Slide 8: Bally's Casino COVID Impact
Bally's Casino COVID Impact Current Casino Properties Current Status of Operations 10am-4am, 24 8am-2am; Hours of Operations 24/7 24/7 24/7 hours weekends 8am-3am Sat 24/7 24/7 24/7 24/7 Occupancy Limit as % of 3,100 people(1); 1st floor open Mon-Thu; 540 people(1) 50% 60% 50% 50% 50% 25% 50% Buildi
Slide 9: Bally's National Footprint and Market Access
Bally’s National Footprint and Market Access Strategic footprint in states that have generated ~82% of US sports betting revenues1 Key Stats 3rd Largest Footprint 2 for Online Sports Betting in the U.S. 13 Total States3 10 States with Live Sports Betting3 14 Casino Properties, plus 1 Racetrack and 1
Slide 10: Bally's Casino Portfolio Summary
Bally's Casino Portfolio Summary Casino Properties Total Segment Rhode Island Mid-Atlantic Southeast West Pending Casino Acquisitions Casino Kansas City Hard Rock Biloxi MontBleu Casino Resort & Twin River Casino Hotel Dover Downs Casino Golden Gate Casino Casino Properties Casino Vicksburg, Eldorad
Slide 11: Pending Acquisitions
Pending Acquisitions Purchase Consideration Strategic Rationale • Secures position in Indiana gaming market at a value accretive multiple • Limits cash outflow and debt incurrence by developing a relationship with an industry-leading REIT $140 million purchase • Further enhances mobile / online spor
Slide 12: Evansville further enhances geographic reach without additional leverage
Evansville further enhances geographic reach without additional leverage or significant cash outflows ▪ 1,145 slot machines ▪ 4 food and beverage ▪ 41 table games (including 8 outlets poker tables) ▪ 2 casino bars ▪ 338 hotel rooms ▪ 1 active sportsbook ▪ 46,265 square foot gaming ▪ 47,000 square fo
Slide 13: Jumer's acquisition provides access to growing gaming markets in Illinois
Jumer's acquisition provides access to growing gaming markets in Illinois with the potential to capitalize on lucrative sports betting and iGaming opportunities ▪ 870 slot machines ▪ 4 food and beverage ▪ 25 table games (including 6 outlets poker tables) ▪ 1 night club ▪ 205 hotel rooms ▪ 1 concert
Slide 14: MontBleu establishes a destination property for top customers
MontBleu establishes a "destination" property for top customers across the brand ▪ 418 slot machines ▪ 2 on-site bar and ▪ 17 table games entertainment venues, ▪ 438 hotel rooms, a pool featuring the Opal Ultra and fitness center, full Lounge nightclub service salon and spa ▪ 16,000 square feet of m
Slide 15: III. Growth Track Record
III. Growth Track Record
Slide 16: Bally's has Grown Through a Disciplined Investment Strategy and Strategic Acquisitions
Bally's has Grown Through a Disciplined Investment Strategy and Strategic Acquisitions Organic Growth Initiatives Strategic M&A 2018 2020 2014 2019 2020 Lincoln Hotel Tiverton Hard Rock Biloxi Black Hawk Acquisition ERI/CZR Asset Acquisitions Isle-KC Redevelopment Dover Downs Merger Construction Con
Slide 17: Bally's Corp Adjusted EBITDA by Property
Bally's Corp Adjusted EBITDA by Property 2019 Actual, 2019 Estimate for M&A Under Contract, and Expected Post-Covid Run-Rate Consolidated Adjusted EBITDA by Property: Excludes Interactive Division 125 $400 111 100 100 $331 $300 $300 75 ($ in millions) 50 40 $200 37 35 35 33 32 32 25 23 $167 25 20 20
Slide 18: Proven Track Record of Successful Developments – Tiverton Casino and Twin River Hotel
Proven Track Record of Successful Developments – Tiverton Casino and Twin River Hotel Twin River Hotel • The Company has a track record of successful developments to drive future growth • In 2016, the Company successfully secured approval to relocate its Newport gaming license to a more competitivel
Slide 19: Kansas City - Potential Redevelopment Rendering
Kansas City - Potential Redevelopment Rendering Note: The above rendering is a preliminary, illustrative example of the type of structural enhancements the Company may make to the property. Any actual changes to the property, if made, may be different from the example above. 19
Slide 20: Centre County, PA Development
Centre County, PA Development Company intends to jointly develop and manage a casino in Centre County, PA as majority partner • Category 4 licensed casino with up to 750 slot machines and 30 table games • Company retains 100% of economic interest of all retail sports betting, online sports betting a
Slide 21: Bally's Richmond Development
Bally's Richmond Development Proposal to develop $650 million world class casino and resort in Richmond, Virginia The project, which will span more than 1.6 million total square feet, will include a casino, sportsbook, hotel, resort- style pool, dining and retail outlets, and a flexible space for li
Slide 22: Proposed New Partnership with IGT to Protect and Enhance State Gaming Revenues
Proposed New Partnership with IGT to Protect and Enhance State Gaming Revenues (Currently pending legislative approval) Proposed Agreement Yields a Number of Important Benefits for Bally's ■ VLTs – Bally's would be licensed as a technology provider and would manage approximately 23% of the VLTs at R
Slide 23: Twin River Casino Hotel - Planned Expansion and Renovation
Twin River Casino Hotel - Planned Expansion and Renovation Investment of $100 million to update Lincoln facility • 18-month renovation and expansion of Twin River Casino Hotel • 40,000 square foot addition to the first floor gaming space and 14,000 square foot spa in the hotel • Timing of capital ex
Slide 24: Twin River Casino Hotel - Planned Expansion and Renovation
Twin River Casino Hotel - Planned Expansion and Renovation 24
Slide 25: IV. Bally's Interactive
IV. Bally's Interactive
Slide 26: Massive Market Opportunity in U.S. Sports Betting & iGaming
Massive Market Opportunity in U.S. Sports Betting & iGaming Long-term strategic partnership with Sinclair and the acquisition of Bet.Works positions Bally’s to capture significant share of the ~$50B market opportunity 1. Industry Research, February 2020 2. Industry Research, November 2020 (Online Sp
Slide 27: Bet.Works Acquisition and Sinclair Partnership as Foundation
Bet.Works Acquisition and Sinclair Partnership as Foundation ▪ Bally’s to acquire 100% ownership of Bet.Works—a U.S. based, turnkey ▪ Bally’s and Sinclair entering into transformational media partnership sports betting platform with a fully integrated technology stack between national leaders in spo
Slide 28: Overview of Bet.Works
Overview of Bet.Works Bet.Works is a leading U.S. sports betting and iGaming technology provider 28
Slide 29: Partnership With Sinclair Provides Powerful Distribution Network
Partnership With Sinclair Provides Powerful Distribution Network Spreads Bally's brand and contact across one of the largest local broadcast TV portfolios and largest portfolio of regional sports networks in the US Sinclair's expansive reach Branded content and an immersive digital experience 21 Reg
Slide 30: Combining National Leaders in U.S. Gaming and Media
Combining National Leaders in U.S. Gaming and Media 1. Database size based on best estimates by management including pending acquisitions. 2. Reflects unduplicated % of Total U.S. HHs based on RSN and broadcast station coverage per Nielsen Universe estimates as of 9/30/2020; includes YES Network and
Slide 31: A Unified Gaming Experience Through a Digital-First Approach
A Unified Gaming Experience Through a Digital-First Approach Note: Final configuration of branding / logo to be announced 31
Slide 32: Recent Interactive Acquisition Announcements
Recent Interactive Acquisition Announcements Announcement date: November 18, 2020 February 8, 2021 January 25, 2021 Sportsbook Technology Platform with International B2B free-to-play game Fastest-growing and third-largest Description: proprietary technology stack provider daily fantasy sports operat
Slide 33: Omni-Channel Offering with a B2B2C business model
Omni-Channel Offering with a B2B2C business model Sportsbook Technology Platform with proprietary Fastest-growing and third-largest daily fantasy International B2B free-to-play game provider technology stack sports operator in the US 33
Slide 34: Benefits of Vertical Integration with Omni-channel Gaming Offering
Benefits of Vertical Integration with Omni-channel Gaming Offering 34
Slide 35: Bally's Corporation Poised for Success
Bally’s Corporation Poised for Success 1. Database size based on best estimates by management including pending acquisitions 35
Slide 36: V. Key Financial Highlights / Q4 2020 Results
V. Key Financial Highlights / Q4 2020 Results
Slide 37: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Proforma Q4 2020 Cash on hand: $123 million Available borrowing capacity: $215 million Total liquidity: $338 million Liquidity after pending acquisitions(1): $132 million Face value of debt(2): $1,129 million No substantial debt maturities before 2024 (1) Proforma
Slide 38: Continued Revenue Diversification
Continued Revenue Diversification M&A Strategy Focused on Accretive Growth Q4 2020 Q4 2019 1% 2% 19% 27% 24% 53% 30% 21% 22% Rhode Island Mid-Atlantic Southeast West Other Rhode Island Mid-Atlantic Southeast Other 38
Slide 39: Corporate Strategy Driving Adjusted EBITDA Diversification
Corporate Strategy Driving Adjusted EBITDA Diversification (1) Strong Early Performance of Recent Acquisitions Proving M&A Strategy Full Year 2020 Full Year 2019 11% 20% 36% 9% 44% 71% 9% Rhode Island Mid-Atlantic Southeast West Rhode Island Mid-Atlantic Southeast (Excludes "Other" operating segment
Slide 40: Appendix
Appendix
Slide 41: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Quarter Ended December 31, Year Ended December 31, (in thousands, except percentages) 2020 2019 2020 2019 Revenue $ 118,096 $ 130,419 $ 372,792 $ 523,577 Net income (loss) $ 20,223 $ 13,355 $ (5,487) $ 55,130 Interest expense, net of interest income 19
Slide 42: Reconciliation of Net Income to Adjusted EBITDA by Segment
Reconciliation of Net Income to Adjusted EBITDA by Segment Quarter Ended December 31, 2020 (in thousands) Rhode Island Mid-Atlantic Southeast West Other Total Revenue $ 32,402 $ 26,454 $ 35,483 $ 22,642 $ 1,115 $ 118,096 Net income (loss) $ 15,103 $ (1,670) $ (2,210) $ 4,274 $ 4,726 $ 20,223 Interes
Slide 43: Reconciliation of Net Income to Adjusted EBITDA by Segment
Reconciliation of Net Income to Adjusted EBITDA by Segment Quarter Ended December 31, 2019 (in thousands) Rhode Island Mid-Atlantic Southeast Other Total Revenue $ 69,483 $ 27,637 $ 31,187 $ 2,112 $ 130,419 Net income $ 16,479 $ 2,016 $ 4,065 $ (9,205) $ 13,355 Interest expense, net of interest inco
Slide 44: Reconciliation of Net Income to Adjusted EBITDA by Segment
Reconciliation of Net Income to Adjusted EBITDA by Segment Year Ended December 31, 2020 (in thousands) Rhode Island Mid-Atlantic Southeast West Other Total Revenue $ 132,028 $ 73,676 $ 114,832 $ 47,332 $ 4,924 $ 372,792 Net income (loss) $ 20,276 $ (241) $ 10,486 $ (712) $ (35,296) $ (5,487) Interes
Slide 45: Reconciliation of Net Income to Adjusted EBITDA by Segment
Reconciliation of Net Income to Adjusted EBITDA by Segment Year Ended December 31, 2019 (in thousands) Rhode Island Mid-Atlantic Southeast Other Total Revenue $ 306,306 $ 80,806 $ 127,432 $ 9,033 $ 523,577 Net income $ 71,124 $ 6,031 $ 18,165 $ (40,190) $ 55,130 Interest expense, net of interest inc
Slide 46: Reconciliation of Net Income to Adjusted EBITDA Bally's Atlantic City
Reconciliation of Net Income to Adjusted EBITDA Bally's Atlantic City (in millions) Q4 2020 Net loss $ (3.5) Benefit for income taxes (3.0) Depreciation and amortization 0.2 Allocation of corporate costs 0.4 Adjusted EBITDA $ (5.9) (1) Storm-related repair expenses, net of insurance recoveries, asso
Slide 47: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Full Year (in thousands) Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Cash flow from operations $ 17,312 $ (33,693) $ 18,092 $ 17,791 $ 19,502 Capital expenditures 2,999 2,449 3,118 6,717 15,283 Free cash flow $ 14,313 $ (36,142) $ 14,974 $ 11,074 $ 4,219 Full Year (in thousand