Bally’s Corporation has agreed to purchase the Tropicana Las Vegas Hotel and Casino from Gaming and Leisure Properties Inc. (GLPI). Bally’s estimates the transaction to be valued at approximately $308 million.
The purchase price for the Tropicana property’s non-land assets is $150 million. In addition, Bally’s has agreed to lease the land underlying the Tropicana property from GLPI for an initial term of 50 years at annual rent of $10.5 million, subject to increase over time. Bally’s and GLPI will also will enter into a sale-and-leaseback transaction relating to Bally’s Black Hawk, CO, and Rock Island, IL, casino properties for a cash purchase price of $150 million payable by GLPI. The lease will have initial annual fixed rent of $12 million, subject to increase over time.
The transaction is expected to be accretive to Bally’s shareholders long term and will require no cash outlay from Bally’s at closing.
“Landing a preeminent spot on the Las Vegas Strip is a key step for us,” said George Papanier, president/CEO of Bally’s Corporation. “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.”
The Tropicana Las Vegas Hotel and Casino includes 1,470 guestrooms, 50,000 sq. ft. of casino space, a 1,200-seat performance theater and 100,000 sq. ft. of convention and meeting space.
The transaction is expected to close in early 2022, subject to customary real estate and working capital adjustments, receipt of required regulatory approvals and other customary closing conditions.
Jones Day represented Bally’s on the transaction. GLPI was represented by Goodwin Proctor.