Gaming heavyweight Bally’s Corporation will finally enter the Las Vegas gaming market after announcing a deal to purchase the iconic Tropicana Las Vegas, Nevada Hotel & Casino from Gaming and Leisure Properties Inc. (GLPI)
The Rhode Island-based gaming company will acquire the property in a deal reported to be worth $308 million. The deal includes the purchase of the 1,500-room hotel, the casino, and the theater and convention property.
Speaking in a company press release, George Papanier, Bally’s president and CEO, said:
“Landing a preeminent spot on the Las Vegas Strip is a key step for us. The Strip is visited by over 40 million players and guests per year, which we believe will significantly enhance Bally’s customer base and player database, as well as unlock marketing opportunities to leverage the iconic Bally’s brand.
This expansion will also support the growth and development of our online and interactive business. We look forward to exploring significant redevelopment of the property, which we believe will enhance its financial profile.”
This will be the company’s first foray into the Las Vegas market as Bally’s Las Vegas on the strip is actually owned and operated by Caesars Entertainment Inc.
The news follows the confirmation that Bally’s merger deal with gaming operator Gamesys Group Inc. was finalized.
The Tropicana deal is expected to be finalized in early 2022. Bally’s will pay $150 million for non-land assets while there is also an agreement in place to lease the land from GLPI for a 50 year period at annual rent of $10.5 million. However, this rent may increase over time.
Bally’s and GLPI have also entered a further sale and leaseback agreement that will see GLPI lease Bally’s Black Hawk Colorado and Rock Island Illinois properties. The deal includes a purchase price of $150 million for the casinos and a lease of $12 million per year for the land.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.