Bally’s Corporation has completed its long-awaited purchase of Tropicana Las Vegas from Gaming and Leisure Properties Inc and PENN Entertainment.
First announced in April 2021, the deal sees the non-land assets of Tropicana sold to Bally’s for $148m, payable to GLPI, whilst PENN unloaded all outstanding equity interest in the firm.
Additionally, Bally’s has entered into a lease agreement for the land assets underpinning Tropciana’s operations, renting the land for 50 years at a rate of $10.5m per annum.
As laid out in the initial agreement last spring, the company has expanded a partnership with GLPI via a sale-and-leaseback deal 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 on this deal is $12m per annum, subject to increases.
Speaking at the announcement of the deal last year, George Papanier, President and Chief Executive Officer of Bally’s Corporation, stated: “Landing a preeminent spot on the Las Vegas Strip is a key step for us. 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.”