Intralot has agreed to acquire Bally’s International Interactive in a cash-plus-stock deal worth €2.7bn (£2.3bn).
The deal, which was jointly announced by the Greek supplier and the Rhode Island-based land-based and online operator, includes a cash consideration of €1.53bn.
A further €1.136bn of newly issued shares in Intralot, with an implied value of €1.30 per share, will make up the stock portion of the deal.
Bally’s is currently Intralot’s largest shareholder and will become a majority shareholder in the business once the transaction completes, which is slated for Q4 2025.
Bally’s had increased its shareholding in Intralot from 26.86% to 33.34% today, 1 July.
Intralot has obtained commitments from investment banks Citizens Bank, Deutsche Bank, Goldman Sachs and Jeffries for debt financing up to €1.6bn to fund the acquisition
The supplier is also set to launch a €400m share capital increase on the Athens Stock Exchange.
It was announced that Bally’s CEO Robeson Reeves will become Intralot boss, with current Intralot chief Nikolaos Nikolakopoulos transiting to become president and CEO of its lottery arm.
Current Intralot deputy CEO Chrysostomos Sfatos will become the company’s CFO.
Bally’s International Interactive is predominantly driven by its UK arm, which houses the former Gamesys brands, which Bally’s previously acquired.
As per the latest available investor presentation, the UK accounted for 74% of revenue in the division in Q2 2024.
Other operations in the Rest of the World and Europe, including Spain and Ireland, make up the rest of the business. The previously held Asia-facing segment was sold in a management buyout last year.
In the UK, Bally’s operates Jackpotjoy and Bally Casino, while sports betting via Kambi was added to both of those igaming brands last year.
Intralot said the acquisition would create a “a global igaming and lottery champion with enhanced diversification and scale”.
The combined business will also have “highly complementary technology platforms”, with Intralot’s systems to be integrated with Bally’s data analytics capabilities.
“The combined technology stack is expected to enhance competitiveness in contract renewals and new opportunities via platform enhancement, loyalty programme integration, data-driven marketing and real-time customer insights,” the group said.
Intralot, which has had a historic legacy of running lotteries across the globe, said there would be cross-sell opportunities as a result of the transaction.
Management highlighted “short-term achievable cost synergies across organisational, third-party and operational areas driving additional margin expansion”.
International Interactive revenue in Q1 2025 tumbled 18.3% year on year due to the Asia divestment, yet UK online revenue rose 4.9%.
The transaction comes after Bally’s was taken private by its largest shareholder, Standard General, earlier this year.
Bally’s efforts will now focus on its land-based casinos and digital efforts in the US. It also swooped to snap up the distressed Star Entertainment casino business in Australia recently.
Nikolakopoulos said: “Intralot takes a major step forward in becoming a global technology and services leader in the lottery and gaming sectors.
“Bally’s brings unparalleled digital capabilities, technological and operational, giving us a unique advantage in helping state lotteries enhance player experiences and maximise returns for good causes.”
Reeves added: “This transaction marks a transformative moment for Bally’s as we unite our outstanding gaming and data technology with Intralot’s exceptional expertise in lottery.
“Together, we are creating a unique proposition that will pave the way for a new era of innovation and growth across the entire gaming spectrum.”
In a note sent out by Regulus Partners, the boutique analyst firm said the deal made sense for both parties, with Bally’s aiming to reduce its international exposure and Intralot inversely increase it.
The note added: “On the face of it, there is not much to bring Intralot and Bally’s international interactive together other than that Bally’s need for cash to fund its land-based casino developments in the US and Australia, while Bally’s Interactive is now over-exposed to the UK from a risk perspective after the loss of Asia and limited expansion elsewhere.
“For Bally’s, converting c. €215m of FCF [free cashflow] into €1.5bn of cash is perhaps an easier trade than other financing options.
“For Intralot, gaining exposure to online gaming also makes sense, albeit in terms of strategic growth more than synergies and probably not starting with a large legacy position in the UK (the hyperbole that Bally’s has unlimited space to expand into online gaming sounds rather 2005).”
Regulus Partners estimates that 90% of the division’s revenue comes from the UK, while the market would account for 60% of revenue for the combined group.
“Intralot will therefore be hoping that the cash-strapped UK government does not look at the 35% GGR tax applied to online gambling in Greece covetously,” the team added.
The post Intralot to acquire Bally’s International Interactive for €2.7bn first appeared on EGR Intel.
Greek business announces blockbuster deal to bolster sports betting and igaming reach, with Bally’s online chief Robeson Reeves to become CEO of newly combined entity
The post Intralot to acquire Bally’s International Interactive for €2.7bn first appeared on EGR Intel.