Earlier this week, Bally Bet announced that it was removing its online sportsbook from most states it operates in as it prepares to rebuild its product on a new technology platform. But in Arizona, sports bettors will still be able to use Bally Bet without interruption.
Arizona is the only state where Bally Bet is not shuttering its mobile sports betting app. Instead, the current version of the sportsbook will remain available to consumers here.
While the company has not made an announcement on why Arizona is keeping the existing iteration of the Bally Bet sportsbook, it could be due to its success in the state. In March, the Bally Bet sports betting app enjoyed a 34% jump in handle, to a total more than $240,000. Figures from every state where Bally Bet is operational are not available, but it could be assumed the app’s largest market share is in Arizona.
Bally partners with Kambi Group on betting platform
Arizona sports betting has been robust, with more than a dozen online sportsbooks and several retail sportsbooks at tribal casinos and sports venues. Bally Bet unveiled a 2.0 version of its app in May, which could also explain why the company has decided to remain live in Arizona.
Bally Bet is no longer available in Colorado, Iowa, Indiana, New York, Virginia, or Ontario. The company announced that June 26 was the final date bets would be accepted. All customers in those jurisdictions must withdraw any funds from their accounts by June 30.
Existing customers must close their accounts and get their money because the new app will not have legacy information. No accounts can be transferred from one to the other. If customers fail to withdraw their funds by June 30, that money will be sent to them in the form of a check via postal mail.
Bally has partnered with technology partner Kambi Group to build a new sports betting app. Kambi is one of the leading technology providers for sports betting operators. A new Bally Bet app on the Kambi platform should be more robust and competitive. In many states, Bally Bet is well behind other top sportsbook operators like DraftKings, FanDuel, and BetMGM.
The decision to shut down its app in most states has also put on hold pending launches by Bally Bet in Massachusetts and Ohio. The company has been granted licenses in each of those states but had not launched a product yet.
Bally Bet seems to be more competitive in Arizona
Arizona is an ideal state for Bally’s Corporation, which operates Bally Bet, to maintain a consistent presence. Bally may see Arizona, with a relatively smaller market compared to larger states with legal sports betting, as a place to gain a strong foothold. The cost of doing business here is cheaper.
For example, in New York, Bally Bet has totaled $15.5 million in bets accepted, which is just 0.0006% of the state’s total handle. The company has reported just $849,228 in gross gaming in New York. However, like all other operators in that state, Bally paid $25 million for a New York sports betting license. On that pace, Bally Bet will not break even in The Empire State until the year 2050.
Bally Bet Arizona can’t afford to suspend the app in a market where it is performing well. Also, the brand has a deal with the WNBA’s Phoenix Mercury. However, unlike other sportsbooks in the state, it doesn’t have a retail sportsbook. So Bally Bet only receives sports betting revenue from its online app.
Arizona is an explosive and competitive market for sports betting apps. Unlike other states, which have gravitated to one or two top sportsbooks, many apps have been able to grab a share of the total handle in The Grand Canyon State.
Bally Bet has also been able to offer lucrative Arizona sports betting promotions to gain customers.