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Bally Manufacturing
Industry	Interactive entertainment
Fate	Acquired by Hilton
Founded	January 10, 1932; 88 years ago
Founder	Raymond Moloney
Defunct	December 18, 1996; 23 years ago
Headquarters	Chicago
Products	Pinball slot machines later expanded into casinos, video games, health clubs, and theme parks

Bally Manufacturing, later renamed Bally Entertainment, was an American company that began as a pinball and slot machine manufacturer, and later expanded into casinos, video games, health clubs, and theme parks. It was acquired by Hilton Hotels in 1996. Its brand name is still used by several businesses with some trademark rights, most notably Bally Technologies and Bally's Corporation.

History[edit]

The Bally Manufacturing Corporation was founded by Raymond Moloney on January 10, 1932, when Bally's original parent, Lion Manufacturing, established the company to make pinball games. The company took its name from its first game, Ballyhoo. The company, based in Chicago, quickly became a leading maker of the games. In the late 1930s, Moloney began making gambling equipment, and had great success developing and improving the mechanical slot machines that were the core of the nascent gaming industry. After manufacturing munitions and airplane parts during World War II, Bally Manufacturing Corporation continued to produce innovations in flipperless pinball machines, bingo machines, payout machines and console slot machines through the late 1950s. They also designed and manufactured vending machines and established a coffee vending service. The company made a brief venture into the music business with their own record label, Bally Records.^[1]

Moloney died in 1958, and the company floundered briefly. With the financial failure of its parent company, Bally was bought out by a group of investors in 1963. Throughout the 1960s, Bally continued to dominate the slot machine industry, cornering over 90% of the worldwide market by the end of the decade. In 1964, Bally introduced the first electromechanical slot machine in 1963, called the 'Money Honey.', Bally became a publicly traded company and made several acquisitions, including German company Guenter Wulff-Apparatebau (renamed Bally Wulff) and Midway Manufacturing, an amusement game company from Schiller Park, Illinois.

The 1970s[edit]

In the late 1970s, Bally entered the casino business when New Jersey legalized gambling in Atlantic City. This 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. Prior to this, O'Donnell strenuously denied any such links.^[2] For example, when questioned at the Moffitt Royal Commission (the NSW Clubs Royal Commission) - an investigation held New South Wales, Australia - on alleged criminal activities with US and Australian criminals, he admitted that Genovese Mafia boss, Jerry Catena (Gerardo Catena), once owned shares in the business, '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. The Bally Professional Arcade, as the machine was called, had advanced features for the time. These included a palette of 256 colors and the ability to play 4-voice music. The machine also 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 creations on cassette tape. The machine's price point was above the Atari 2600 (its major competitor), and it had a much more limited set of available games. Despite a loyal following, it failed to compete successfully. 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 the licenses for three of the most popular video games of all time: Space Invaders, Pac-Man and Ms. Pac-Man.^[3]

The 1980s[edit]

By the mid-1980s, the company 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, under '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 (which was subsequently re-branded as Bally's Las Vegas), The MGM Grand Reno (Reno, Nevada) and the Golden Nugget Atlantic City which was branded Bally's Grand and then later 'The Grand-A Bally's Casino Resort'. This 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.

The 1990s[edit]

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] How to stop gambling now. The Aladdin's Castle chain of video arcades was sold that year to Namco, and was renamed as 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. The project would eventually begin construction in 1997 and open 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 o