Bally Manufacturing

In the late 1970s, Bally entered the casino business when New Jersey legalized gambling in Atlantic City. The effort moved forward even though the company was temporarily unable to attain a permanent license for the completed casino. During this period, company head William T. O'Donnell was forced to resign because of alleged links to organized crime, which he strenuously denied.[2] When questioned by the Moffitt Royal Commission (the NSW Clubs Royal Commission) in New South Wales, Australia, during an investigation of criminal activities between the US and Australia, O'Donnell admitted that Genovese Mafia boss Jerry Catena (Gerardo Catena), once owned shares in Bally, "but I bought him out."[2] He also denied knowing Chicago mobster Joseph Dan Testa, even though Australian police described Testa "as a representative of Bally who visited Australia."[2]

The company opened the Park Place Casino & Hotel on December 29, 1979.[3][4] Also in the late 1970s, Bally made an entry into the growing market for home computer games with the Bally Professional Arcade. It had advanced features for the time, including a palette of 256 colors and the ability to play 4-voice music. It shipped with a cartridge that allowed users to do a limited amount of programming on the machine themselves, using the BASIC language and record their programs on cassette tape. However, because it cost more than its major competitor, the Atari 2600, and had much fewer games, it failed to compete successfully despite a loyal following. During the 1970s and early 1980s, Midway became a primary source of income for Bally as it became an early arcade video game maker and obtained licenses for three of the most popular video games of all time: Space Invaders, Pac-Man and Ms. Pac-Man.[3]

By the mid-1980s, Bally again had a strong balance sheet and began buying other businesses, including the Six Flags amusement park chain in 1983, and the Health and Tennis Corporation of America. The health club division, Bally Total Fitness, grew during the 1980s and 1990s. The company also purchased several casinos, including the MGM Grand Hotel and Casino on the Las Vegas Strip (subsequently rebranded Bally's Las Vegas); The MGM Grand Reno in Reno, Nevada; and the Golden Nugget Atlantic City, rebranded Bally's Grand and later The Grand—A Bally's Casino Resort. The expansion quickly took its toll on the company's finances, and Bally was soon forced to sell off several divisions, including Six Flags and Bally-Midway. The pinball division, along with Midway, was acquired by Williams Electronics in 1988.

In 1990, Bally came under new management as its largest shareholder, Arthur Goldberg, was appointed chairman and began a restructuring process.[5] By 1993, the company had sold off several divisions and used the proceeds to pay down debts, including the slot machine division (which became Bally Gaming International, an independent company); Scientific Games, a maker of lottery equipment; Bally's Reno; and exercise equipment maker Life Fitness.[6] The Aladdin's Castle chain of video arcades was sold that year to Namco and renamed Namco Cybertainment.

The company opened Bally's Saloon & Gambling Hall, a riverboat casino in Mhoon Landing, Mississippi in December 1993.[7][8] It was moved to Robinsonville in 1995 and became part of a joint venture with Lady Luck Gaming.[9]

In 1994, the company changed its name to Bally Entertainment, to reflect its focus on the casino business and the fact that it no longer had any manufacturing operations.[10][11] It also announced that the health club business would be spun off to shareholders, to further narrow Bally's focus on casinos.[11] The spin-off was completed in January 1996, with Bally Total Fitness becoming a separate company.[12][13]

In May 1995, Bally Entertainment announced plans to develop Paris Las Vegas, a new casino hotel next to Bally's Las Vegas. Construction began in 1997, and it opened in 1999 at an estimated cost of $760 million.

In June 1996, Bally agreed to be acquired by Hilton Hotels Corporation.[14] The sale was completed on December 18, 1996, with Hilton paying $3 billion ($2 billion in stock plus $1 billion in assumed debt).[15] Later, Hilton's casino division, including the former Bally properties, was spun off as Park Place Entertainment (later Caesars Entertainment, Inc.), which was acquired in 2005 by Harrah's Entertainment (later Caesars Entertainment Corp.).

The Crocodile Hunter Outback Adventure based on the wildlife documentary television series The Crocodile Hunter was in development by Australian pinball manufacturer The Pinball Factory under license from Bally. It was abandoned at the end of 2007 due to the death of the main character of the game, Steve Irwin, and never went into production.[17]