Land-based gaming operator Bally’s Corporation has announced its acquisition of the Tropicana Las Vegas casino from real estate investment trust Gaming and Leisure Properties Inc (GLPI), giving the operator its first Las Vegas Strip property.
Bally’s will pay $150m for the Tropicana’s non-land assets. It will then lease the underlying land of the Tropicana property for 50 years at an annual price of $10.5m.
In addition, the operator enter a sale-and-leaseback transaction to Bally’s properties in Black Hawk, Colorado and Rock Island, Illinois for $150m, payable by GLPI.
GLPI was created in 2013 as a spin off from gaming operator Penn National Gaming, which sold the Tropicana Las Vegas property to GLPI in March 2020. GLIP agreed to lease the property back to PNG for $337.5m in rent credits.
“Landing a preeminent spot on the Las Vegas Strip is a key step for us,” said George Papanier, president and chief executive officer of Bally’s.
“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.”
The transaction is expected to be finalized in early 2022.
Earlier today (April 13) it was announced that Bally’s had agreed definitive terms for its merger with international online operator Gamesys in a deal that would see Bally’s pay 1,850 pence ($25.38) per Gamesys share.
Today, Bally’s also announced that its revenue grew to more than $185m during the first quarter of 2021, while its earnings before interest, tax, depreciation and amortisation (EBITDA) also increased.