Bally’s Corporation’s Acquisition of Monkey Knife Fight


Jones Day advised Bally’s Corporation on the deal.

Bally’s Corporation (NYSE: BALY) (the “Company”), a leading U.S. provider of land-based gaming and interactive entertainment, announced that it has entered into a definitive agreement to acquire Monkey Knife Fight (“MKF”), the award-winning, fastest-growing[1] gaming platform and third-largest daily fantasy sports (“DFS”) operator in North America. The all-stock transaction makes Bally’s just the third sports betting company in the U.S. to have a fantasy sports segment. In 2020, MKF, which offers its loyal users a dynamic and creative slate of daily sports and e-sports contests, was ranked by SponsorUnited as the sixth most-searched and tenth fastest-growing brand in sports and entertainment.

Bally’s acquisition of MKF is the latest step in the Company’s long-term growth and diversification strategy to become the first truly vertically integrated sports betting and iGaming company in the U.S. with a B2B2C business model. Importantly, it complements Bally’s recent media partnership with Sinclair Broadcast Group and its pending acquisition of Bet.Works, including its proprietary technology stack.

As part of the acquisition, MKF is set to receive immediately exercisable penny warrants to purchase up to approximately $50 million in Bally’s common shares (subject to adjustment) at closing, and (2) contingent penny warrants to purchase up to approximately $20 million in additional Bally’s common shares on each of the first and second anniversaries of closing, for a possible total of up to approximately $40 million. The contingency relates to MKF’s continued operations in jurisdictions in which it operates at closing. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions.

Jones Day served as legal advisor to Bally’s Corporation. Shearman & Sterling and Stikeman Elliott served as legal advisors, and Canaccord Genuity served as financial advisor, to MKF.

Bally’s Corporation currently owns and manages 11 casinos across seven states, a horse racetrack and 13 authorized OTB licenses in Colorado.

Ranked as the third largest Daily Fantasy Sports (DFS) company, Monkey Knife Fight’s (MKF) award winning site is the fastest-growing gaming platform in North America.

The Jones Day team was led by Robert Profusek (Picture).

Involved fees earner: Robert Profusek – Jones Day;

Law Firms: Jones Day;

Clients: Bally’s Corporation;

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Author: Ambrogio Visconti