Bally Bet Revamps App in New Sports Betting Success Attempt
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SportsTranscript
00:00 [MUSIC]
00:02 >> All right, and our final story to cover here is on Bally Bet.
00:06 Should I be surprised to be reading, Sam, from you on social media that
00:09 Bally Bet is jumping back in again?
00:12 I guess I just didn't see this coming.
00:14 I mean, anything associated, unfortunately, with Bally at this point,
00:18 let's be honest, has been on the negative side.
00:21 A lot of the RSNs in hockey and in the NBA and
00:24 major league baseball have the Bally name on it.
00:27 A lot of folding going on there and the keys to the kingdom being sent over to
00:32 the NBA and major league baseball in this.
00:34 But hey, I guess if they wanna give it a shot, is there no harm in doing it?
00:41 I guess I'm just surprised to see this.
00:42 >> Yeah, my grandma always told me if at first you don't succeed, try, try again.
00:49 And that's exactly what Bally has been doing with sports betting.
00:53 This is actually Bally Bet 3.0 that they're in the first period of launching.
00:58 The first iteration didn't go well.
01:00 The second iteration when they spent millions and
01:02 millions on trying to build out their own technology didn't go well.
01:05 They had to write off those losses.
01:07 And now they're hoping that relaunching the app under third party technology,
01:12 which is kind of a revert from where most companies are going,
01:16 will help kind of fix the problems that they've had.
01:20 Specifically on sports betting,
01:21 obviously you touched on all the other problems that companies had.
01:25 They lost $62 million during the last quarter,
01:28 which compared to the same period the year before when they actually made a profit.
01:33 It's a pretty stark change.
01:34 So they've got a lot of issues they're working through right now.
01:37 They have a newly appointed CEO who's trying to head the sports betting venture.
01:41 And he's been vocal about, we know we're not gonna compete with DraftKings and
01:45 FanDuel at the top here.
01:47 We kind of wanna make sure we have a presence to use our sports betting app as
01:51 a funnel for iGaming.
01:53 They're launching in Rhode Island where the company's headquartered later this year,
01:59 early next year.
02:00 And they really wanna use their sports betting app as a vehicle just to get
02:03 people to play online blackjack and online casino games there,
02:07 which is very different than the companies we just talked about.
02:09 So they're spending more money on this, but they say kind of using this
02:14 third party technology allows us to lay off more employees and save money that way.
02:19 What we know it's not really gonna be a high margin business for us anyway.
02:22 So it's kind of treading water under this new regime for ValleyBet.
02:28 But yeah, it's not looking great for the company overall.
02:31 Their stock price is very, very low right now.
02:34 So they're under a lot of pressure to cut costs and
02:38 do things as close to right as possible as they can going forward.
02:40 [MUSIC]