With an impact on the app’s users and the U.S. sports betting landscape, Bally Bet will be shuttering its mobile sports betting app on June 30th and will transition to the Kambi platform over the next few months.
New Platform
Costly mistakes made years ago by former Bally’s CEO, Lee Fenton, has led to a total redo of the company’s sports betting app. The lengthy process will leave its customers in the lurch and likely fleeing to competitors rather than wait months for the launch of the new app under the Kambi platform. Only those users in Arizona will be unaffected by the change.
Customers must withdraw their funds by June 30th or a check will be mailed to their address for any balances remaining. Once the transition to the Kambi platform is complete, customers will have to sign up again for accounts but are expected to gain a better experience with more betting options and markets from which to choose.
The first online launch with the new rebrand is anticipated to be in Ohio where Bally’s has yet to activate. The company has a partnership with the Cleveland Browns and will want to ensure that the app is ready to go when the NFL kicks off in September.
No Choice
Although the consequences of shutting down a sports betting app and alienating existing customers are severe, the company believed it had no choice. The former CEO made a series of missteps which ultimately resulted in the drastic steps being taken now.
When added all up, the buildout for their own app using technology from the companies it purchased cost in the neighborhood of $3 billion, with the vast majority spent on the Gamesys acquisition. There was also over $192 million in cash and stock shelled out for the sportsbook platform Bet. Works while the now-defunct fantasy site, MonkeyKnifeFight, cost $22.4 million in cash and 1.772 million in warrants for a combined $118.6 million.
In retrospect, what Bally’s should have done is swallowed the bitter pill of revenue sharing with a third-party provider as many of the other sports betting operators do. And that’s exactly what they are doing now after spending billions to try to do it themselves.
Robeson Reeves, the current CEO of Bally’s Corporation, said, “We are very excited to have entered into long-term agreements with both Kambi and White Hat — two of the world’s most established and trusted gaming technology companies. Kambi provides an award-winning sportsbook that delivers unrivaled sports betting entertainment. By incorporating that with White Hat’s PAM platform solution, as well as our geographic reach, customer base, and marketing prowess, Bally’s will be optimally positioned to achieve significant scale and capture substantial market share in the global gaming market. This, in turn, will support our vision of becoming the premier, full-service, vertically integrated casinos and resorts, online sports betting, and iGaming company.”
Kristian Nylén, Kambi’s Chief Executive Officer and Co-founder said, “We are pleased to enter into this long-term partnership with Bally’s to enable the enhancement and expansion of its online and retail sports betting platform and services. Kambi is the proven global leader in sportsbook provision and I believe this powerful collaboration with Bally’s will deliver its customers the next-generation betting entertainment they demand.”
Calculators
