Rhode Island-based gaming company, Bally’s Corporation (BALY:NYSE) has announced it will acquire the Tropicana Las Vegas from Gaming and Leisure Properties Incorporated (GLPI) in a deal valued at around $308 million. The acquisition comes within a week of Bally’s closing on its $155 million purchase of MontBleu Resort Casino & Spa in Northern Nevada from Caesars Entertainment, Inc. (NASDAQ: CZR).
Under the terms of the deal, Bally’s will pay $150 million for the Las Vegas Strip property’s non-land assets and $10.5 million annually to lease the 35-acre parcel the 64-year-old casino sits on. The 50-year rental agreement is subject to increases. Additionally, Bally’s will enter into a sale-leaseback agreement with GLPI for its trio of Black Hawk, Colorado casino properties and Jumer’s Casino & Hotel in Rock Island, Illinois, which it is in the process of acquiring from Delaware North Companies Gaming & Entertainment, Inc.
The lease, according to the company presser, will have an initial fixed rent of $12 million, subject to increase over time, and GLPI will pay Bally’s $150 million to own the properties.
Beneficial investment:
In a statement in the official April 13, 2021 press release, President and Chief Executive Officer for Bally’s Corporation, George Papanier said…
“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.”
The expansion, said Papanier, would support the company’s growth and development of its online and interactive business. He added that they “look forward to exploring significant redevelopment of the property, which we believe will enhance its financial profile.”
Subject to various adjustments, approvals, and other closing conditions, Bally’s, which thanks to the recently completed MontBleu acquisition is already licensed in Nevada, expects the transaction to be finalized in early 2022.
Formerly known as Twin River Worldwide Holdings, Bally’s acquired its name and trademarks in a $20 million deal with Caesars Entertainment in 2020. The agreement, however, did not require Caesars Entertainment Inc. to change the name of its Bally’s Las Vegas property.
Gamesys close:
The press release comes on the same day Bally’s announced the definitive terms for its approximately $2.2 billion agreement to purchase British iGaming software developer Gamesys Group. Details of the proposed arrangement involve the Rhode Island-based company paying $1.85 for every one of the UK firm’s outstanding shares, which would represent a 12.6 percent premium when compared with their closing price on March 23, 2020.
Sports betting growth:
Bally’s Corp also recently scored its third sports betting partnership, after inking a multiyear agreement designating it as authorized gaming operator of Major League Baseball (MLB). The arrangement follows similar deals with the National Basketball Association (NBA) in early March and the National Hockey League (NHL) in February.
The partnership follows the company‘s entry into?Virginia‘s gaming market, after being?issued a temporary permit?by the?Virginia Lottery?that will allow it to conduct online sports betting in the Commonwealth. The move grows the gaming’s company’s national footprint into 13 states, including Colorado, Delaware, Illinois, Iowa, Indiana, Louisiana, Missouri, Mississippi, New Jersey, Nevada,?Pennsylvania, Rhode Island, and Virginia, upon completion of all pending acquisitions.