Financing Structure Details
The financing package consists of two primary components designed to provide stable, long-term funding for the acquisition. The first element includes a €460 million six-year senior secured term loan agreement negotiated with institutional lenders. The second component features €200 million in binding financing commitments structured as a four-year amortizing term loan from a Greek bank consortium.
The financing arrangement also includes provisions for Intralot’s existing €130 million retail bond, which may remain outstanding following the completion of the acquisition under agreements reached with current bondholders.
Strategic Transaction Impact
The acquisition will create a combined entity generating €1.1 billion in annual revenue, positioning the merged organization as a leader in both iGaming and lottery operations. The reverse-style merger structure will result in Bally’s becoming the majority shareholder of Intralot upon completion.
For Bally’s Corporation, the transaction provides improved cash reserves to support ongoing land-based casino development projects across the United States and Australia. Both companies anticipate completing the acquisition before the end of 2025, subject to standard regulatory approvals and closing conditions.
Leadership Transition Plans
The merger will bring significant changes to executive leadership across both organizations. Bally’s Chief Executive Robeson Reeves will assume the role of Intralot CEO, while current Intralot CEO Nikolaos Nikolakopoulos will transition to lead the lottery division. Both Intralot Chairman Sokratis Kokkalis and Bally’s Chairman Soohyung Kim will maintain their board positions.
“This transaction marks a transformative moment for Bally’s as we unite our outstanding gaming and data technology with Intralot’s exceptional expertise in lottery,” stated Reeves. “Together, we are creating a unique proposition that will pave the way for a new era of innovation and growth across the entire gaming spectrum.”
Performance Metrics and Market Focus
Intralot’s recent financial results for the first half of 2024 showed revenue growth alongside operational challenges, with lottery operations contributing 53% of total revenue. Sports betting accounted for 22% of revenue, while video lottery terminals and IT products and services represented 12.8% and 12.2% respectively.
The combined entity plans to prioritize expansion in the UK market, capitalizing on Bally’s strong customer retention capabilities. According to Reeves, the UK-focused approach provides both stability through established regulation and opportunities for geographic diversification through Intralot’s global presence.
“We’re very UK dominant, but this combination allows us to spread out our revenue,” Reeves explained during a recent capital markets presentation. “Regulation means that you end up with a stable, reliable business.”
The transaction positions both companies to pursue B2C iGaming, sports betting, and iLottery expansion opportunities while maintaining their respective strengths in regulated markets.
