Lee Fenton
Chief Executive Officer at Ball
Thank you, Bobby, and hello, everyone. With our first full quarter together as we launched Bally's, I am extremely excited about the potential across our business for 2022 and beyond. We closed Gamesys, the largest of our acquisitions to date on October 1 of last year and we've made significant progress on integration to this point and we'll give you just a few highlights.
With the [indecipherable] consolidated group budget based on a clear set of strategic goals for 2022. In the next week, we will unveil our purpose and values to our global employee base, which will be at the heart of how we grow our business over the coming years. We have started to see the first fruits of our omnichannel vision with the launch of Bally iCasino [Phonetic] in New Jersey. Our data project, which will be a key enabler to allow us to further optimize our business performance is well underway.
We are on-track with our rollout of Bally VAT to.0 [Phonetic]. We continue to build top-of-funnel awareness, grow our customer data set and see increasing engagement on our free-to-play products. We have rationalized the Gamesys public co-stand [Phonetic] to the tune of approximately $5 million. We launched the Bally's Foundation in the UK to improve global employee buy-in and global awareness and we will launch the same in the U.S. in the next few months. And as we continue to drill down into the business, we are finding best practices among teams, which will drive efficiencies for us in the longer term.
Bringing together a wide array [Phonetic] of assets, we geographically dispersed teams and a number of business lines is not without complexity. So, I'd like to give my heartfelt thanks to all of the Bally's team for the passion with which they have approached all of the integration work streams.
As we've stated before, we are unique combination with equal revenues coming from U.S. retail casinos and the global digital business. We believe in customer centricity driven by great service, great data and great analytics. We do not need to be first to market with an inferior product, customers will always have choices and your first impression is more important than timing of launch. We will launch when the product is right and we are willing to miss short-term gains to build long-term trust and value with our customers.
With the continue to rational spending on sports betting, we have concentrated our North American interactive focus on building sports betting product that is U.S.-centric and easy to use for the mass market. We will be getting to market at 2.0 product in Arizona and New York in the first half of 2021. We've also accelerated our efforts to go live in Ontario with regulated iGaming and we expect to launch there in the summer and we'll add additional state launches through the second half of the year.
Bally iCasino launched in New Jersey in December and I'm very pleased with the early results. As you know, one of the core plans for the rationale and bringing together the Bally's and Gamesys was to enable a lower cost of acquisition into digital products. We've seen very positive early momentum through our cross-sale campaign from the AC database into iCasino. It's above our expectations across the board, but actually delivering double-digit database conversion in the higher value segment.
Across sale campaign has enabled our blended CPA to come in under $200 and this brought in customers with predicted LTVs, Circa 2 x compared to what we've seen on our Virgin iCasino brand in the same state. We plan for increase our cross-sell campaigns further in Q1 2022. Naturally, we will also evolve this proposition as we go forward and that was illustrated with the addition of Live Casino to the product on Monday of this week.
We continue to focus on a differentiated omnichannel strategy where we drive awareness of the Bally's brand using free-to-pay products to optimize customer acquisition, providing cost structural advantages for our interactive business. A great example of this is the $100 Million March Madness bracket challenge that we will launch on March 7, leveraging our properties, our extensive partnership with Sinclair and our free-to-play expertise to deliver an extremely cost effective marketing campaign.
As we introduced the third quarter, we're going to report our business with three primary segments: casinos and resorts, International Interactive, and North America Interactive. So, turning to casinos and resorts; we have a large portfolio of regional gaming assets that generate significant and sustainable cash flow. 2021 was a record-revenue, EBITDA and free cash flow year. The 2021 pro forma for acquisitions completed in the year, excluding Atlantic City, revenues were $983 million and EBITDA was $395 million showing at 40% EBITDA margin.
Fourth quarter gave us EBITDA of $83 million on revenues of $278 million. Excluding AC, EBITDA of $88 million on revenues of $247 million, showing a 36% EBITDA margin. In the seasonally lower fourth quarter, we were negatively impacted by COVID and the previously mentioned smoking ban in triple [Phonetic]. In addition, in response to market conditions, we bought back from [indecipherable] in November-December, the course a little upside with COVID and the impact of poor weather. We pulled back those maintenances in January. In the past few weeks, we have seen the return of strong margins.
2021 pro forma as if all acquisitions closed at the beginning of the year, we would have had revenue of approximately $1.15 billion. Going to turn to $2 billion, we expect revenues to be flat or slightly up from that level. EBITDA in the range of $385 million to $395 million. We expect the Atlantic City will contribute $150 million of revenues and no EBITDA.
Excluding AC, we expect EBITDA margins to be in the 38% to 39% range. This includes the January that have $5 million of headwinds in this due to COVID and particularly poor weather. Volumes have bounced back in-line with expectations in February, inflationary pressures, particularly on the wage side the main headwinds into 2022. But we expect the market to be rational and continue to expect that we will maintain most of the margin guidance over 2019. Our FTE count of the casinos at the end of Q4 2021 was down to 26% over Q4 2019 and we expect it to hold at that level through 2022.
We have $180 million of capital expenditures in the properties in 2022 with the key highlights being Atlantic City, where we'll add 750 new hotel rooms in several new amenities that will be in service by Memorial Day, Lincoln where will build out 50,000 square feet and have a significantly enhanced Asian offering. In Kansas City, the investment will extend into 2023, but provide significant upside to an already successful story with the addition of 40,000 square feet of land-based facility housing non-gaming amenities. In addition, we will finalize the full Bally's rebranding of our properties by the second quarter.
Moving to International Interactive, which primarily operations in the UK and Asia -- 2021, the record revenue, EBITDA and free cash flow. In terms of revenue for the full year on a constant currency basis, UK was plus 10% year-on-year and Asia was plus 18%. Tough comps in Q4 on a constant currency basis, the UK was down 5% and Asia, up 8%. Handle in the UK was only up 1% or more than 40% move down in house [Phonetic] led a result slightly below expectations.
For January, as such came back to normal levels, Q4 averaged monthly active users were down 3% year-on-year, our deposits picked up 4%. We continue to believe that the average bet size customer profile responsible gaming standards and the lack of dependence on VIP business puts us in a favorable position of the UK progresses of the Gambling Act Review. We have always been and will continue to be the leader of best practices in the market, illustrated by our recent GamCare accreditation for the safer gambling standards at Level 3, which is the highest level any company can achieve.
In Asia, within fourth quarter revenues, plus 8%, while total handle was plus 14% and deposits were up by 15%. Our new [indecipherable] brand continues to take share and during Q4, we moved to 24/7 customer care for the market.
Slots is now a launched product segment and even when you combine Live and RNG Casino. And we believe this demonstrates wider adoption of online gaming in the market. We were first mover out there and can say that the data is pointing us to tremendous opportunities in both sure and long-term. In 2021, 34% of NGR [Phonetic] was from customers acquired over two years ago and this is up from 22% in 2019 and 2020. Having a strong and growing long-term customer base allows us to be more competitive and continue to invest while maintaining strong growth and cash flow.
In the UK for 2022, we expect low-to-mid single digit growth. For H1, we have some tough COVID comps where we expect the year-on-year decline you saw in Q4 to be the low point. We expect Asia to deliver double-digit growth. Spain, rest of Europe and rest of the world, will have revenues of $50 million to $60 million compared to $68 million in 2021 due to the closure of non-core market. We expect a total revenue of approximately $1.15 billion and assuming a GBP U.S. fee rate of 1.35. Segment EBITDA margin should stay of our long-term guidance of 28% to 29%. We will spend approximately $30 million on capital expenditures, consistent with the historic spend on platform development.
Lastly, North America Interactive, which comprises our growing B2C operations and supported B2B operations. The business continues to grow quarter-on-quarter $19 million revenue in the quarter, compared to $11 million in Q3; EBITDA losses of $8 million in the quarter, which is within the range that we expected and compares to approximately $5 million of losses in the third quarter. Bally iCasino launched in December and we have good momentum through January and into February. Brand awareness is strong and improving through the visibility given across Bally Sports.
The North America Interactive, we project 2022 to have a $125 million of revenue and a negative $60 million of EBITDA and $30 million of capital expenditures. The capital expenditures are primarily software development costs required for our state-by-state launches.
Our corporate segment is projected to be $50 million and our REN which does not include any REN associated with Tropicana Las Vegas is $46 million. We will announce additional details on Tropicana in the coming months, but we continue to be excited about the opportunity in Vegas and we are in our advanced discussions with potential development partners. We expect to be in a position to communicate our partners and plans by the half year ahead of completion in early Q3.
Putting all of this together, it gives us a headline net revenue of $2.4 billion to $2.5 billion and adjusted EBITDA of $560 million to $580 million and that includes $60 million of EBITDA losses in North America Interactive. Capital expenditures include the $120 million of growth capital at the properties, $60 million of maintenance, plus $60 million interactive, split between North America and International, and $30 million of one-time CapEx related to integration.
Prior to turning to Steve, I want to update you on our ESG efforts. Gamesys was a leader in ESG in the UK and Bally's will be a leader in the U.S. Bally's have now established an official ESG committee of the Board, the longstanding Gamesys foundation in the UK has been renamed the Bally's Foundation and we'll spend more than GBP2.5 million this year on efforts in the UK. We are also setting up a foundation in the U.S. to invest in the communities that we serve. From an ESG reporting perspective, SASB reporting will go live in Q1 in 2022 and the UN Social Development Goals Reporting framework will be set in the second quarter. In the coming months, we will have a dedicated ESG section on our website, but most importantly, we're increasing our responsible gaming awareness programs across our entire company. Giving back to the community, maintaining a healthy relationship with our customers has always been a priority of our culture.
Now, let me hand over to Steve.
