SCHEDULE 13D/A: Standard General and Affiliate Boost Stake in Bally's Corp to 73.8% Following Merger Close

Standard General L.P. and its affiliate, Kim Soohyung, significantly increased their beneficial ownership in Bally's Corp to 73.8% of outstanding common stock following the closing of a merger transaction on February 7, 2025.

Summary

• Standard General L.P. and Kim Soohyung, collectively referred to as the Reporting Persons, have increased their beneficial ownership in Bally's Corp.
• As of February 7, 2025, the Reporting Persons beneficially own an aggregate of 35,788,558 shares of Bally's Corp Common Stock.
• This represents approximately 73.8% of the 48,488,879 shares of Common Stock outstanding as of the same date.
• The increase includes an additional 26,909,895 shares acquired on February 7, 2025.
• These additional shares were issued in connection with the closing of a merger agreement dated July 25, 2024, involving SG Parent LLC (an affiliate of the Reporting Persons), The Queen Casino & Entertainment, Inc., and subsidiaries of Bally's Corp.

Sentiment

Score: 7

Explanation: The increased ownership by an affiliate following a merger closing suggests a strong commitment and strategic alignment, which can be viewed positively for stability and long-term direction. However, it also implies reduced public float and potential for less minority shareholder influence.

Positives

• Increased control and alignment of interests for Standard General L.P. and Kim Soohyung, who now hold a significant majority stake (73.8%) in Bally's Corp.
• The completion of the merger transaction, which led to the issuance of additional shares, indicates progress on strategic initiatives.

Negatives

• The significant increase in beneficial ownership by a single entity/group could reduce liquidity for other shareholders and potentially limit the influence of minority shareholders.

Risks

• No specific risks related to the company's operations or financial health are detailed in this Schedule 13D filing, which primarily reports ownership changes.

Future Outlook

The document does not provide specific forward-looking statements or guidance regarding Bally's Corp's future operations or financial performance, beyond the completion of the merger transaction.

Industry Context

This filing reflects a significant consolidation of ownership in Bally's Corp by a major investment firm, Standard General, which is common in the gaming and entertainment industry as strategic investors seek to gain greater control over their portfolio companies. The merger with The Queen Casino & Entertainment, Inc. suggests a continued trend of consolidation and expansion within the regional casino market.

Comparison to Industry Standards

• This Schedule 13D filing primarily details a change in beneficial ownership and does not provide financial or operational results that can be directly compared to industry benchmarks or specific comparable companies.
• The increase in a single entity's stake to over 70% is a substantial concentration of ownership, which is not uncommon in companies undergoing strategic shifts or private equity involvement, but it does significantly reduce the public float and influence of minority shareholders compared to widely held public companies like MGM Resorts International or Caesars Entertainment, Inc.

Related Party Transactions

• The acquisition of 26,909,895 shares was in connection with the closing of a merger agreement dated July 25, 2024, involving SG Parent LLC, an affiliate of the Reporting Persons, and Bally's Corp subsidiaries. This constitutes a related party transaction as the Reporting Persons are increasing their stake through an affiliated entity's merger with the Issuer's subsidiaries.

Stakeholder Impact

• Shareholders: Increased control by Standard General L.P. and Kim Soohyung may lead to reduced public float and potentially less influence for minority shareholders. It could also signal a more stable, long-term strategic direction.
• Employees: The merger itself might have implications for employees of the acquired entities, but the filing does not detail these.
• Customers: No direct impact on customers is mentioned in this ownership filing.
• Suppliers: No direct impact on suppliers is mentioned.
• Creditors: No direct impact on creditors is mentioned.

Next Steps

• The document primarily reports a completed transaction and does not outline specific future actions, events, or milestones for Bally's Corp or the Reporting Persons beyond the merger closing.

Key Dates

Keywords

Bally's Corp, Standard General L.P., Kim Soohyung, Schedule 13D, beneficial ownership, common stock, merger, casino, gaming, equity stake