Governor McKee Nominates Tracey Wiley to Commerce Board

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News Summary

Governor Daniel J. McKee has appointed Tracey Wiley, an executive at Bally’s Corp., to the Rhode Island Commerce Corporation board of directors. Wiley’s experience in diversity, equity, and inclusion is expected to guide discussions and decisions as the Commerce Corporation addresses ongoing economic challenges. Despite recent financial setbacks for Bally’s, including a significant loss in fiscal year 2024, Wiley’s leadership may enhance corporate governance and support Rhode Island’s economic growth in the gaming industry.

Providence, Rhode Island – Governor Daniel J. McKee has announced the nomination of Tracey Wiley, an executive at Bally’s Corp., to the Rhode Island Commerce Corporation board of directors. Wiley brings extensive experience in diversity, equity, and inclusion, having served as the company’s executive director since 2022.

Wiley’s nomination is expected to provide valuable insights on business operations and corporate governance as the Commerce Corporation works to strengthen Rhode Island’s economy and business landscape. In her role at Bally’s, she has focused on incorporating inclusive practices and strategies within the company’s framework, which could play a pivotal role in guiding the board’s discussions and decisions.

Bally’s Corporation, however, has recently faced substantial financial challenges, reporting a loss of $567.75 million for the fiscal year 2024. This loss is attributed to larger asset write-downs and diminished gains from its sale-leaseback strategy, marking a decline that is three times larger than the previous year’s setbacks. This dramatic downturn has raised questions about the company’s future in the gambling industry, especially as it continues to operate two state-run casinos in Tiverton and Lincoln, Rhode Island.

The company is also undergoing significant changes in ownership, as Standard General, Bally’s majority shareholder, has agreed to purchase the remaining shares of the company at $18.25 per share. This acquisition is expected to require approval from Rhode Island gambling regulators before it can proceed and is projected to close in the first half of 2025. Following the announcement of this buyout, Bally’s stock rose by 24%, reaching $16.80 per share.

In Rhode Island, the state anticipates paying Bally’s approximately $303 million in the upcoming fiscal year, starting July 1. This revenue will come from various gaming activities, including slot play, table games, sports betting, and iGaming. The growth potential in these areas remains critical as Bally’s emphasizes its recovery strategy amidst its financial hurdles.

As part of ongoing efforts to stabilize its operations, Bally’s made significant adjustments earlier this year, including the sale of real estate for the Tiverton casino and the Biloxi Hard Rock casino to Gaming & Leisure Properties. This deal allowed the company to reduce its debt burden by at least $150 million through a leaseback arrangement, which is part of its strategy to streamline financial operations.

In a broader context, the company received legislative support to negotiate alterations to its operating agreement beyond the typical legislative approval process. Notably, Bally’s gambling-on-credit limit was raised to $100,000, which has prompted concerns among lawmakers regarding responsible gambling practices.

The acquisition by Standard General also plans to merge Bally’s with Queen Casino & Entertainment, another casino chain owned by Standard General, signifying a continuing trend of consolidation in the gaming and entertainment industry. The merger has garnered backing from significant industry players such as the Sinclair Broadcast Group and Gamesys founder Noel Hayden.

With approximately 10,600 employees, Bally’s operates a total of 15 casinos across 10 states, contributing significantly to local economies and employment. As the company navigates through its challenging financial landscape, the leadership and strategic vision brought by individuals like Tracey Wiley will be critical in shaping the future of Bally’s and enhancing its contribution to Rhode Island’s economic growth.