Bally’s Laying Off 15% Of Its Interactive Employees

Within a year of having their plans to build the largest Illinois casino approved by the Chicago City Council, Bally’s has announced that they will lay off up to 15% of the workforce in their interactive division.

On Thursday, Jan. 19, Bally’s Corporation announced to its employees about its decision and submitted a detailed letter to the Securities and Exchange Commission explaining the move. The letter pointed out the sluggish growth of the North American interactive market as the reason behind the layoffs.

In a communication to staff members, Bally’s CEO Lee Fenton attributed the job losses to an increase in hiring during the pandemic.

Fenton admitted, “The pandemic brought a surge in our business, leading us to maintain rapid hiring. Looking back, I realize we might have hired excessively in some sectors. I accept complete responsibility for this.”

It’s not certain which division of Bally’s will experience employee layoffs. However, Fenton’s earlier remarks put the company’s sportsbook, Bally Bet, in the spotlight for potential cuts.

Fenton has been vocal about the sluggish revenue growth of Bally Bet. In a November earnings conference call, Fenton expressed:

Advancements in our sports sector have been slower than anticipated. Consequently, we will refrain from investing marketing funds into the sports iGaming markets until we achieve our desired level of user experience and technological sophistication. We are determined to reduce losses associated with sports betting – a goal that epitomizes the intended vision for North America Interactive.

News likely puts Bally Bet Illinois sportsbook on hold

Play Illinois speculated in November about which sports betting operators we believe will be the next to enter the Illinois market.

We gave Bally Bet the second-highest odds (3-1) and here’s why. It has two potential options to link an online sportsbook to one of its brick-and-mortar casino locations: either its current Bally’s Quad City Casino and Hotel in Rock Island or its Bally’s Chicago casino.

In September, Bally’s submitted an application for a sportsbook license to the Illinois Gaming Board, indicating a clear interest and intent.

However, the recent news of layoffs and Bally’s shift towards its online casino business could potentially delay any short-term plans Bally’s may have to launch a sportsbook in Illinois.

Will Bally’s layoffs impact the Chicago casino?

In May 2022, Bally’s was successful in the bidding process to open a casino in the River West district of Chicago.

Bally’s acquired the Chicago Tribune printing plant for $200 million in November, with plans to construct a casino on the 30-acre property in the future.

In December, the Chicago City Council approved the zoning plan of Bally’s casino. Currently, Bally’s is awaiting approval from the IGB. Once they receive it, they will commence construction on what is set to be the largest casino in Illinois.

Considering the ongoing progress at Bally’s, it’s improbable that the layoffs will affect the Chicago casino.

Furthermore, Bally Bet has enjoyed significant success and profits from its online casino. Therefore, Fenton has communicated that states with legal iGaming, or those considering permitting online casino gaming in 2023, will be a priority.

Fenton stated that their priority lies in iGaming states. They plan to concentrate resources in markets such as Pennsylvania and Ontario, as well as any states they anticipate will regulate iGaming in 2023.

There is widespread speculation that online casinos in Illinois will become legal in 2023. This provides further reason to believe that Bally’s Casino Chicago will not diminish in popularity or success.