Bally’s Corporation has announced to purchase the Tropicana Las Vegas Hotel and Casino from Gaming and Leisure Properties, Inc. for $308 million. The transaction is expected to close early next year, subject to customary adjustments, regulatory approvals, and other requirements.
According to the news release, the purchase price for the acquired property’s non-land assets is $150 million. Besides, the gaming company said it has agreed to lease the land underlying the Tropicana property from Gaming and Leisure Properties for an initial term of 50 years at a yearly rent of $10.5 million. In addition, Bally’s-GLPI cooperation will also extend into a sale-and-leaseback transaction relating to Bally’s Black Hawk, CO, and Rock Island, IL casino properties for a cash acquisition price of $150 million payable by GLPI, and an initial annual fixed rent of $12 million.
Another Strategic Acquisition for Bally’s
Bally’s Corporation, which owns and manages 12 casinos in eight states, does not own Bally’s Las Vegas on the Strip. However, the company’s acquisition of the nearly 1,500-room Tropicana Casino in Vegas will give Bally’s a piece of the action. Bally’s president and CEO stated the same in a statement, “Landing a preeminent spot on the Las Vegas Strip is a key step for us.” Papanier said that Las Vegas attracts over 40 million tourists each year, adding that the Tropicana purchase will also boost Bally’s customer and player databases, extending market opportunities and benefit the company’s online and interactive business.
This is another strategic move for Bally’s, which plans to expand to three more states through three additional casinos after several acquisitions are completed. Bally’s is already licensed in Nevada following a recently closed acquisition of the MontBleu Resort Casino & Spa. Recently, Bally’s also struck a deal to combine with UK-based online gaming operator Gamesys Group Plc.
What Do We Know About Tropicana Casino?
The Tropicana Casino is located in Las Vegas, Nevada. The property has two towers of 22 and 21 stories on a 35-acre land at a Las Vegas Boulevard intersection. It includes 1,470 guest rooms, 50,000 square feet of casino space with 1,000 gaming positions, a 1,200 seat performance theater and 100,000 square feet of convention and meeting space.
The hotel and casino property and opened its doors in April 1957 at a cost of $15 million. For 50 years, the establishment was home to the “Les Folies Bergere”, showcasing theatrical entertainment until it closed in 2009. The property was acquired by Penn National Gaming in 2015 for $360 million. Last year, Penn sold the land occupied by the Tropicana to Gaming and Leisure Properties for $337.5 million in rent credits. The latest deal with Bally’s is expected to close in early 2022.