Bally’s Corporation is a popular gaming company registered in Rhode Island. It has recently announced its expansion plans that include acquiring Tropicana Las Vegas, a popular land-based gaming facility located in the Entertainment Capital of the World.
Tropicana is currently owned by Gaming and Leisure Properties Incorporated, and the two sides reportedly agreed on the sum of $308 million. This took place only one week after Bally’s closed on a $155-million deal for buying MontBleu Resort Casino & Spa located in Northern Nevada. Caesars Entertainment Incorporated owned MontBleu before the purchase took place.
The terms of the deal dictate that Bally’s need to pay a total of $150 million to acquire the non-land assets owned by Tropicana Las Vegas. Moreover, it will have to pay a total of $10.5 million every year to lease the parcel that occupies 35 acres of land, where Tropicana has been located for the past 6+ decades. The two sides made a 50-year rental agreement, but it may be subject to increases.
Bally also decided to enter into a sale-leaseback agreement with Gaming and Leisure Properties Incorporated for its three properties located in Black Hawk, Colorado, and Jumer’s Casino & Hotel in Rock Island, Illinois. The company is also currently acquiring the latter property from its current owner Delaware North Companies Gaming & Entertainment Incorporated.
The lease will have a fixed rent of $12 million at first, but it will be subject to increase over time. Moreover, GLPI will pay $150 million to Bally’s to become the owner of its properties.
Bally’s Aiming to Increase Vegas Presence
President and CEO of Bally’s Corporation, George Papanier, stated in the official press release that obtaining a spot on the Strip was “a key step” for the company. More than 40 million people visit the Strip every year, and Bally’s officials believe that its customer base will significantly increase and “unlock marketing opportunities,” which will help them further promote the iconic brand.
Moreover, Papanier added that the expansion would support Bally’s growth online as well. He concluded that they were looking forward to exploring the possibilities for redevelopment of the newly acquired property. That would help them “enhance its financial profile.” Bally’s officials hope that the transaction will be finalized as early as the first quarter of 2022.
Bally’s was formerly called Twin River Worldwide Holdings, but it eventually managed to acquire the name Bally’s after making the $20 million deal with Caesars Entertainment Incorporated. However, Caesars didn’t have to change the name of its Bally’s Las Vegas property.
Bally’s is also aiming to expand into the sports betting industry, as it has recently scored yet another betting partnership — third in total. The company signed a multi-year deal to be the official and authorized gaming operator of Major League Baseball (MLB). This follows the two similar deals that the company made with the National Hockey League (NHL) and the National Basketball Association (NBA).
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