Rhode Island-based Bally’s Corp has announced that it has entered into an agreement to acquire Tropicana Las Vegas Hotel and Casino from Gaming & Leisure Properties Inc for about $308 million.
The agreement for the nearly 1500-room hotel, casino, theater and convention property also involves a sale-and-leaseback transaction relating to Bally’s Black Hawk, Colorado and Rock Island, Illinois, casino properties, the company said.
“Landing a preeminent spot on the Las Vegas Strip is a key step for us,” George Papanier, Bally’s president and CEO, said in a statement.
Bally’s Corp does not own Bally’s Las Vegas on the Strip. That 2800-room property at Flamingo Road is owned and operated by Caesars Entertainment Inc.
Papanier noted that Las Vegas draws more than 40 million tourists a year and said owning the Tropicana will boost Bally’s customer and player databases, unlock marketing opportunities and benefit Bally’s online and interactive business.
The Bally’s-Tropicana transaction is expected to close early next year. The company said the price for Tropicana property non-land assets was $150 million, and Bally’s plans to lease the land underlying the Tropicana property from Gaming and Leisure Properties for an initial term of 50 years at $10.5 million in annual rent.
The sale-and-leaseback transaction relating to Bally’s Black Hawk and Rock Island has Gaming and Leisure Properties paying $150 million and an initial annual fixed rent of $12 million.