{"id":278369,"date":"2023-06-20T15:20:30","date_gmt":"2023-06-20T20:20:30","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=278369"},"modified":"2023-06-21T11:14:08","modified_gmt":"2023-06-21T16:14:08","slug":"ballys-stock-should-get-more-rhode-island-igaming-benefits","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/","title":{"rendered":"Bally\u2019s Stock Slump Could Spell Opportunity, Says Analyst"},"content":{"rendered":"

Off nearly 10% over the past week and 23.79% year to date, Bally\u2019s (NYSE: BALY) stock is mired in a lengthy slump.<\/p>\n

\"Bally's
Rhode Island is poised to legalize iGaming. It should be more impactful to Bally’s stock, argues an analyst. (Image: Shutterstock\/Casino.org<\/em>)<\/figcaption><\/figure>\n

The year-to-date loss makes Bally\u2019s one of the worst-performing casino operators since the start of 2023.\u00a0 The stock\u2019s recent weakness against the backdrop of Rhode Island<\/a> — its home state — legalizing online casinos is confounding and perplexing investors.<\/p>\n

In a recent note to clients, Stifel analyst Jeffrey Stantial reiterated a \u201chold\u201d rating on Bally\u2019s, with a price target of $17, implying upside of 13.33% from the June 16 close. Stifel points out that Rhode Island\u2019s decision to legalize iGaming essentially grants Bally\u2019s a monopoly that could be worth at least $20 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).<\/p>\n

For BALY specifically, we estimate the iCasino opportunity in RI, as structured in the legislation, could imply $10-43M (~$21M base case) in incremental adj EBITDA, with likely minimal required capital outlay,\u201d<\/strong> wrote the analyst.<\/p><\/blockquote>\n

Last week, Bally\u2019s won approval for a temporary casino in Chicago<\/a> and formal approval for its $1.7 billion integrated resort in that city.<\/p>\n

Bally\u2019s Stock Not Getting Rhode Island iGaming Love<\/h2>\n

With Rhode Island on pace to become just the sixth state to allow iGaming, a case can be made that more upside should have been assigned to Bally\u2019s stock on that news.<\/p>\n

\n

As Stantial pointed out, Stifel\u2019s base case for Rhode Island internet casinos is that $3 per share will be, over time, added to Bally\u2019s shares, with the possibility existing that figure could be as high as $5.<\/p>\n<\/div>\n

\u201cNonetheless, the bill, as structured, appears to “gift” BALY a material growth driver, seemingly not reflected in recent performance, with shares -4% on Friday and -6% since the RI Senate first passed their respective bill,\u201d Stivel added. \u201cThis suggests to us a potential tactical near-term trade opportunity, as more details surface in the coming days.\u201d<\/p>\n

While sports wagering is live and legal in far more states — and garners much more media attention than internet casinos — the reality is the latter provides operators with superior margins, lower overhead, and better long-term growth outlook<\/a> than sports betting. Said another way, Stantial could be right that Bally\u2019s stock deserves more adulation on the back of the Rhode Island news.<\/p>\n

Don\u2019t Sleep on Bally\u2019s Rhode Island Benefits<\/h2>\n

Entering 2023, analysts expected a small number of sparsely populated states to join the legal sports wagering<\/a> fray, and nothing on the iGaming legalization front. That confirms Rhode Island is indeed a pleasant surprise, and that the related headline should probably have had a more positive impact on Bally\u2019s stock.<\/p>\n

Gambling expansion tends to come in waves given the political narrative around cross-border tax revenue cannibalization, and hence we view any momentum favorably even if relatively small in scale,\u201d<\/strong> concluded Stantial.<\/p><\/blockquote>\n

Bally\u2019s currently operates land-based casinos in nine states. Of that group, Illinois would be the golden goose when it comes to iGaming. But a related legislative effort there recently failed.<\/p>\n","protected":false},"excerpt":{"rendered":"

Off nearly 10% over the past week and 23.79% year to date, Bally\u2019s (NYSE: BALY) stock is mired in a lengthy slump. The year-to-date loss makes Bally\u2019s one of the worst-performing casino operators since the start of 2023.\u00a0 The stock\u2019s recent weakness against the backdrop of Rhode Island — its home state — legalizing online […]<\/p>\n","protected":false},"author":46,"featured_media":260638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,19,13],"tags":[81903,81871,81899],"acf":[],"yoast_head":"\nBally's Stock Should Get More Rhode Island iGaming Benefits<\/title>\n<meta name=\"description\" content=\"Bally's stock could deliver more iGaming upside over time, says analyst.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bally's Stock Should Get More Rhode Island iGaming Benefits\" \/>\n<meta property=\"og:description\" content=\"Bally's stock could deliver more iGaming upside over time, says analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-20T20:20:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-21T16:14:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/shutterstock_102706514.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/\",\"url\":\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/\",\"name\":\"Bally's Stock Should Get More Rhode Island iGaming Benefits\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/shutterstock_102706514.jpg\",\"datePublished\":\"2023-06-20T20:20:30+00:00\",\"dateModified\":\"2023-06-21T16:14:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bally's stock could deliver more iGaming upside over time, says analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-should-get-more-rhode-island-igaming-benefits\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/shutterstock_102706514.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/shutterstock_102706514.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Rhode Island is poised to legalize iGaming. 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