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.
Bally's Finally Makes Move to Vegas With Tropicana Hotel & Casino Acquisition, George Papanier, Bally’s president and CEO, said: Bally's Finally Makes Move to Vegas With Tropicana Hotel & Casino Acquisition Bally's Finally Makes Move to Vegas With Tropicana Hotel & Casino AcquisitionThis 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.
