Even after recent setbacks, Bally’s new chief executive officer is dedicated to the sports betting industry.
After announcing losses and costs related to the sports betting business in North America, Robeson Reeves, Bally’s CEO, is dedicated to the company being a player in the industry there.
On Monday, the casino operator that has its headquarters in Providence, Rhode Island, said that Reeves will succeed Lee Fenton as Bally’s CEO, effective March 31st. Reeves, age 39, stated that he is considering licensing the technology necessary for sports betting from a third party rather than attempting to develop it internally.
As part of the announcement of the company’s fourth-quarter results on Monday, Bally’s also revealed an impairment charge of $390.7 million. This charge is primarily related to two US-based online gaming acquisitions, Bet.Works Corp. and Monkey Knife Fight were made as part of a restructuring of the company’s interactive unit, which was announced in January. This year, the company anticipates that its operations in North America will lose between $40 and $50 million. In a statement, Reeves referred to the outcomes as “unacceptable.”
Even for long-standing companies like DraftKings Inc., which will release its financial results on February 16th, the sports betting business has been difficult. The profit margins are quite low, and it takes significant money to bring in new clients. In an effort to achieve profitability, some businesses have chosen to exit the market entirely. In contrast, others have reduced their spending on marketing.