Under the new long-term strategic partnership, casino operator Bally's (NYSE:BALY) will integrate its sports betting technology with Sinclair Broadcast Group's (NASDAQ:SBGI) network of local broadcast stations and regional sports networks.
The companies will jointly market, design, and integrate products tailored to local audiences across Sinclair's 190 stations across 88 markets.
The 21 FOX regional sports networks will be rebranded with the Bally's name.
Over the 10-year term of the deal, Sinclair's regional sports network portfolio will receive annual naming rights fees and committed percentage of Bally's marketing spend.
Sinclair will also receive warrants and options to own a minority stake of Bally's.
Stake details: "Sinclair will receive penny warrants to acquire 14.9% of Bally's common shares as well as warrants to purchase up to a total of an additional 10% of Bally's common shares contingent on the achievement of various performance metrics. Sinclair will also receive options to purchase 5% of Bally's common shares in four tranches with purchase prices starting at $30/share and escalating to $45/share, exercisable after four years."
