Bally's Corporation · NYSE:BALY
Bally's — Merger or Acquisition (October 2021)
26 slides from Bally's's merger presentation, October 2021
Slide 1: Gamesys Acquisition Presentation October 2021
Gamesys Acquisition Presentation October 2021 B A L LY ’ S C O R P
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the securities laws. Forward-looking statements are statements as to matters that are not historical facts, and include statements about Bally’s Corporation (“Bally’s”) plans, objectives
Slide 3: Bally's evolution into a premier, omni-channel gaming leader
Bally’s evolution into a premier, omni-channel gaming leader 2013 2014 - 2020 2021 2022 and Beyond Single Market Operator Regional Expansion of Land Based Portfolio Omni-Channel Growth Omni-Channel Gaming Leader Expanded to 16 regional casinos(1) 9 interactive acquisitions and media Gaming leader wi
Slide 4: Completed $3 billion acquisition of Gamesys on October 1, 2021
Completed $3 billion acquisition of Gamesys on October 1, 2021 Internationally Recognized iGaming Brands Experienced Management Team Proven Proprietary Technology Stack 4
Slide 5: Creating a global, vertically integrated omni-channel gaming leader
Creating a global, vertically integrated omni-channel gaming leader Accelerates growth strategy to be a premier, global Creates one of the broadest portfolios in market of omni-channel gaming company omni-channel cross-sell opportunities with land- based gaming, online sports betting, iCasino, poker
Slide 6: Bally's is a leading gaming operator with content, technology and a significant untapped customer base
Bally’s is a leading gaming operator with content, technology and a significant untapped customer base Land Base Casinos with 500k+ monthly Attractive market access through state International 700k+ monthly customers unique customers casino licenses National RSNs with 4.7 billion annual Full OSB + i
Slide 7: Diverse gaming offering with omni-channel capabilities
Diverse gaming offering with omni-channel capabilities Retail Casino Poker Instants Daily Fantasy Free-to-Play Sports Sports Bingo B A L LY ’ S C O R P 7
Slide 8: Sinclair partnership combines national leaders in U.S. gaming and media
Sinclair partnership combines national leaders in U.S. gaming and media Bally Sports Network Launched March 31, 2021 INTEGRATED REACH GAMIFIED MAGNIFIED ALIGNED ~14mm(1) Bally’s A truly Robust local media National integration Sinclair has meaningful database with ~70% omni-channel coverage with oppo
Slide 9: Bally's national footprint and market access
Bally’s national footprint and market access ~$5Bn Total 2020 U.S. Sports Betting & iGaming Market Access market (1) New Construction ~$20 – $50Bn+ Estimated U.S. Sports Betting & iGaming market at maturity (2) Footprint in states that have generated 90% of U.S. Sports Betting revenues (3) Footprint
Slide 10: Gamesys Group's secret sauce
Gamesys Group’s secret sauce Gamesys Group has developed a player centric approach with a singular focus on enhancing the player journey across its product lifecycle Culture, DNA, & People Sustainability Data & Insights Technology & Products Autonomous Decision Algorithmic Driven Reward Infrastructu
Slide 11: Gamesys data and decision making
Gamesys data and decision making Our players generate 250 million data points a day Drivers higher Feeding self-learning player retention algorithms Highest EBITDA margin of our peers Enables execution of Generates a unique casino millions of personalized experience for each player player interactio
Slide 12: The player funnel
The player funnel Widespread sports and game distribution platform with 21 live regional sports networks and global digital brands Free-to-play game provider and real-time fan engagement platforms Third-largest daily fantasy sports operator in the US $ National footprint including 16 casino properti
Slide 13: A unified US gaming experience through a digital-first approach
A unified US gaming experience through a digital-first approach ✓ Single omni-channel Rewards Program built on Gamesys’ Player Account Management (“PAM”) system ✓ Enhanced by Gamesys’ K A N S A S C I T Y proprietary algorithms, which have been refined based on 20 years of operating experience ✓ Will
Slide 14: Diverse asset portfolio creates a dynamic unique customer journey within our ecosystem
Diverse asset portfolio creates a dynamic unique customer journey within our ecosystem Interactive Engagement o Social connectivity o Engaging Content o Lean-In Experiences Customer Engagement with Interactivity We provide our customers o Digital first focused team unique content in our owned o Mark
Slide 15: Building a portfolio of unique content assets…
Building a portfolio of unique content assets… B A L LY ’ S C O R P 15
Slide 16: …That will provide our customers unique customer experience
…That will provide our customers unique customer experience B A L LY ’ S C O R P 16
Slide 17: Different platforms provides more points of engagement
Different platforms provides more points of engagement B A L LY ’ S C O R P 17
Slide 18: Gamesys deal brings together best-in-class Digital & Casino Operators
Gamesys deal brings together best-in-class Digital & Casino Operators Lee Fenton Chief Executive Officer George Papanier • Began with Gamesys in 2008 Robeson Reeves President, Retail • Deep experience of working with President, Interactive global brands and managing operations across multiple • Bega
Slide 19: Appendix
Appendix
Slide 20: Gamesys Group at a glance
Gamesys Group at a glance Gamesys Revenue Evolution (1) (millions) $1,004 • #1 casino-led operator in large and $780 $680 highly competitive U.K. market • Also #1 bingo-led operator in the U.K. $88 • Over 6 million people in database, with 2010 2018 2019 2020 over 700,000 active players per month •
Slide 21: Leader in UK online gaming market while delivering industry leading margins
Leader in UK online gaming market while delivering industry leading margins Gamesys Group has the #1 casino-led market share in the UK, the world’s largest regulated online gaming market, and generates industry leading EBITDA margins 2020 UK Online Gaming Market Share Casino-led Sports-led 23% 18% 1
Slide 22: Key markets with leadership positions
Key markets with leadership positions Gamesys Group has successfully launched its brands on 4 different continents, with the aim to be the market leader in each jurisdiction it enters 58% Revenue Mix by Geography (2020) United Kingdom RoW Europe 3% 9% Asia $1.0Bn UK 30% 58% ~$20 – $50Bn+ 30% Estimat
Slide 23: Standalone Bally's reported historical financials
Standalone Bally’s reported historical financials ($ in millions) Historical Revenue(1) Historical Adjusted EBITDA(1) EBITDA margin 38% 40% 38% 32% 19% 8% $524 CAGR ’16-’19 2% $415 $421 $438 $373 $156 $167 $166 $167 $70 2016A 2017A 2018A 2019A 2020A 2016A 2017A 2018A 2019A 2020A Historical Capex(1)
Slide 24: Standalone Gamesys pro forma historical financials
Standalone Gamesys pro forma historical financials ($ in millions) Historical Revenue(1) Historical Adjusted EBITDA(1) EBITDA margin 37% 34% 34% 28% 28% 23% $1,004 15% $284 $780 $229 $680 $218 $198 $577 $163 $441 (2) (2) (2) (2) (2) (2) 2016A 2017A 2018A 2019A 2020A 2016A 2017A 2018A 2019A 2020A His
Slide 25: Pro forma historical financials (2016-2020)
Pro forma historical financials (2016-2020) ($ in millions) Historical Revenue(1) Historical Adjusted EBITDA(1) EBITDA margin 37% 37% 35% 30% 26% 15% $1,303 $1,376 3% $1,117 $364 $394 $386 $997 $355 $855 $319 (2) $780 $1,004 (2) (2) (2) (2) $680 (2) $198 $229 $218 $441 $577 $163 $284 $415 $421 $438
Slide 26: Reconciliation of Further Adjusted EBITDA to 2Q'21
Reconciliation of Further Adjusted EBITDA to 2Q’21 Q1'20 Q2'20 Q1'21 Q2'21 2020 LTM Q2'21 Net Income ($8.9) ($23.6) ($10.7) $68.9 ($5.5) $85.2 Interest expense, net of interest income $11.4 $15.1 $20.3 $21.3 $62.6 $77.8 Provision (benefit) for income taxes ($5.7) ($12.5) ($4.8) $27.0 ($69.3) ($29.0)