1. Home
  2. News
  3. Gaming Industry
  4. Bally’s Corporation To Purchase Tropicana Las Vegas

Bally’s Corporation To Purchase Tropicana Las Vegas

James Murphy
by in Gaming Industry on
  • Bally’s Corporation has announced their plans to purchase the Las Vegas Tropicana from Gaming and Leisure Properties.
  • The deal is valued at $308 million USD and is expected to close in early 2022.
  • Bally’s will also do a sale/leaseback deal with GLPI on properties in Colorado and Illinois.

Bally’s Corporation (NYSE: BALY) released their preliminary Q1 results and business update earlier this week and with it came a whole slew of news. The most interesting news to non-CPAs is likely the announcement that Bally’s will purchase the Las Vegas Tropicana from gaming REIT (real estate investment trust) Gaming and Leisure Properties (NASDAQ: GLPI). This will be the first Southern Nevada property for the new incarnation of Bally’s (previously Twin River Worldwide Holdings). Bally’s is already licensed in the Silver State due to their recently completed acquisition of the MontBleu Resort Casino & Spa in South Lake Tahoe.

The total deal is valued at $308 million USD–it’ll end up with a sale/leaseback situation as follows:

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.

As noted in the previous paragraph, the two companies will also enter into a sale/leaseback deal for Bally’s Black Hawk, CO and Jumer’s Casino in Rock Island, IL.

Here’s what George Papanier, President and Chief Executive Officer of Bally’s Corporation, had to say about the acquisition of the Tropicana:

“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.”

Bally’s Tropicana purchase does create the question of what happens with another property named Bally’s Las Vegas–owned by Caesars Entertainment–down the street. When Twin River Worldwide purchased Bally’s Atlantic City–and rebranded their company–part of the deal was giving Caesars the right to use the Bally’s brand for their Las Vegas property. Ideally, Bally’s Corporation would take over the Bally’s brand in Las Vegas but not sure how Caesars Entertainment would feel about that. They could always call it something like ‘Bally’s Tropicana’ but then you’ve got potential confusion with the Caesars owned Bally’s Las Vegas. On the other hand, it would be silly for everyone concerned for Bally’s to not be able to brand their casino with their corporate name while Caesars Entertainment runs a property called Bally’s down the street. Bally’s Corporation and Caesars Entertainment have had a good working relationship of late so maybe they’ll find a way to work it out.

At the time of publication, James Murphy has a long position in BALY.

As seen on

Bet Now! Bet Now!