The casino resort on the Las Vegas Strip has been acquired by the gambling company Bally’s Corp.
US.- Gaming and Leisure Properties has sold the iconic Tropicana Las Vegas Hotel and Casino has been sold to the Rhode Island-based Bally’s Corp for $308m.
It marks Bally’s entry into Vegas. Although there is already a Bally’s Las Vegas on the Strip, the resort is owned by Caesars Entertainment Inc.
According to Associated Press, the sale of the nearly 1,500-room hotel, casino, theatre and convention property also involves a sale-and-leaseback transaction relating to Bally’s Black Hawk, Colorado and Rock Island, Illinois, casino properties.
George Papanier, Bally’s president and CEO, said in a statement: “Landing a preeminent spot on the Las Vegas Strip is a key step for us.”
He said that the Tropicana casino will boost Bally’s customer and player databases, unlock marketing opportunities and benefit Bally’s online and interactive business. The transaction is expected to close early next year.
Bally’s said the price for Tropicana’s non-land assets was $150m. Bally’s plans to lease the land under the property from Gaming and Leisure Properties for an initial term of 50 years at $10.5m in annual rent.
The sale-and-leaseback transaction relating to Bally’s Black Hawk and Rock Island will see Gaming and Leisure Properties pay $150m and an initial annual fixed rent of $12m.
Bally’s already owns and operates 12 casinos in eight states, including Bally’s Atlantic City in New Jersey. It expects to own and manage 15 casinos in 11 states after several acquisitions are completed.