Las Vegas Hotel & Casino Set to Trade for an Estimated $308M

Bally’s Corp. has agreed to acquire Tropicana Las Vegas Hotel and Casino from Gaming and Leisure Properties. The transaction is estimated to value $308 million.

Bally’s, which provides gaming and interactive entertainment, also plans to acquire the property’s non-land assets, as well as Penn National Gaming’s equity interests in the hotel and casino for $150 million in cash.

Bally’s has additionally agreed to lease the land underlying the Tropicana property from GLPI for an initial term of 50 years at an annual rent rate of $10.5 million; subject to increase over time.

The property, situated on a 35-acre land parcel on the corner of Tropicana Blvd. and Las Vegas Blvd., is the Bally’s first Las Vegas asset. The hotel and casino features 1,470 guest rooms, 50,000 square feet of casino space with 1,000 gaming positions, a 1,200 seat performance theater and 100,000 square feet of convention and meeting space.

“Landing a preeminent spot on the Las Vegas Strip is a key step for us,” George Papanier, president and CEO of Bally’s, adding that the Strip is visited by over 40 million players and guests per year.

As part of the transaction, Peter Carlino, chairman and CEO of GLPI, reported that the company has also secured rights of first refusal on potential future assets.

In addition, Bally’s and GLPI will enter into a sale-leaseback transaction for Bally’s casino properties in Black Hawk, CO and Rock Island, IL, for a total consideration of $150 million, payable by GLPI. The lease will have an initial annual $12 million fixed rent; subject to increase over time.

The transaction is expected to close in early 2022. Goodwin Proctor represented GLPI in the transaction, and Jones Day represented Bally’s.