Landlord Gaming is ready to sell its resort-based casino ”The Tropicana”. Rhode Island-based Bally’s Corp. agreed to purchase it at $308 million.
A gaming real estate investment trust named GLPI will keep possession of the land. Under an initial 50-year period, GLPI will give the property to Bally on lease. $10.5 million is the amount set in annual rent. The amount of rent subject to increase. So, Bally’s will spend almost $150 million to operate the property.
Tuesday news has confirmed the transaction. According to them, the process will complete in next year.
Besides this, the two companies agreed on another lease agreement. This deal includes Bally’s Black Hawk property in Colorado. In addition, Rock Island casino in Illinois. GLPI paid $150 million in cash to purchase the land under the properties. After the acquisition, they will lease the properties back to Bally’s. The annual fixed rent is $12 million.
Bally’s CEO George Papanier
Bally’s CEO George Papanier declared the agreement a milestone for the company. He said getting a spot on the Las Vegas Strip is a vital step for the company. Therefore, it will help us in growing our business.
Previously this month, Bally’s had purchased the MontBleu Resort near Lake Tahoe from Caesars Entertainment Inc. Papanier, added that Bally’s would rebuild this property. First opened in 1957, the property has 1,470-rooms. It has been on sale for nearly a year.
Papanier also revealed the reason Bally choose to purchase the Tropicana. He said that over 40 million players visit this place every year. In addition, guests visit here as well. We believe it will increase Bally’s customer base and player database. It will unlock marketing opportunities to sell the iconic Bally’s brand. In conclusion, the extension will support the development of our online and interactive business.
Bally currently owns and manages 12 casinos across eight states. According to the release following pending acquisitions, the number will rise to 15 casinos across 11 states.
Companies Position At Stock Market
On Tuesday morning, at New York Stock Exchange, Bally’s shares were down 10.6 percent, therefore selling at $54.36. Similarly, GLPI shares were trading up 0.6 percent at $43.61. Penn National Gaming shares were down by 3.4 percent. They were trading at $98.32.