What happened Investors in casino operator Bally's (NYSE: BALY) are processing a deluge of news from the company today. So far, they don't like what they've heard, as the stock was down as much as 15% before paring that decline. As of 12:15 p.m. EDT, Bally's shares are down about 9.5% on the day. So what The new developments were a business update with preliminary first-quarter 2021 results, the acquisition of UK-based online gambling operator Gamesys with an all-cash offer, the purchase of the Tropicana Las Vegas Hotel and Casino, and finally the issuance of $600 million in common stock and $250 million of equity units to pay for proceeds that will be used to help pay for the new spending. Image source: Getty Images. Now what Today's stock reaction seems to be mostly focused on the added dilution to pay for the company's growth initiatives. The combination with Gamesys will mean paying about $2.2 billion in cash plus the assumption of debt. Bally's said the $850 million in equity will go toward the cash portion of the purchase. The transaction to acquire Tropicana from real estate investment trust (REIT) Gaming and Leisure Properties (NASDAQ: GLPI), valued at approximately $308 million, will not require a cash disbursement. It includes a sale-and-leaseback agreement relating to Bally's Black Hawk, Colorado, and Rock Island, Illinois, casino properties to cover the nonland purchase of the Tropicana property. The company's business update struck a positive note as the travel and leisure sector continues to recover from the pandemic. The company particularly noted the increased demand during the month of March. But the dilution coming with the equity raise seems to have gained most of investors' attention today. 10 stocks we like better than Bally's CorporationWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Bally's Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends Gaming and Leisure Properties. The Motley Fool has a disclosure policy.Source