Bally’s Corporation has completed the acquisition of the Tropicana Evansville land-based casino in Indiana from Caesars Entertainment.
Under the deal, Bally’s will take ownership of all Tropicana Evansville casino operations, as well as unencumbered rights to the facility’s sports betting and online gambling skins.
Tropicana Evansville comprises 79,000sq ft of enclosed space, including 45,000sq ft of casino floor, four dining venues and a race and sportsbook. The complex also includes 11,000sq ft of convention space adjacent to the casino, a Riverfront Event Center, a 243-room hotel tower and a 95-room boutique hotel.
As part of the agreement, an affiliate of Gaming & Leisure Properties Inc (GLPI) acquired the real estate associated with the casino for $340m, which it will now lease to Bally’s for $28m per year.
GLPI also purchased the real estate associated with Bally’s Dover Downs casino for $144m in Delaware, which it is leasing back to Bally’s for $12m per year. Both leases are governed by a master lease agreement with GLPI, which will run for an initial 15 years and includes four, five-year options.
Bally’s had agreed to acquire the casino operators for $140m, but as a result of the leasing stricture, Bally’s said no cash outlay was required at the closing of the deal.
The Tropicana Evansville acquisition was agreed in October of last year, prior to the Bally’s rebrand from Twin River Worldwide Holdings. Twin River acquired the Bally’s brand from Caesars earlier in the same month.
“The Tropicana Evansville acquisition closing marks another major accomplishment in what has already been a truly remarkable year for Bally’s,” Bally’s president and chief executive George Papanier said.
“As we continue to implement our growth and diversification strategy with precision, we are excited to welcome the Tropicana Evansville into the Bally’s family and look forward to the opportunity to provide our first-in-class land-based and interactive entertainment offerings to the Indiana gaming market.”
In October, Bally’s Corporation also announced its acquisition of the Tropicana Las Vegas casino from GLPI, in a deal that gave the operator its first Las Vegas Strip property.