Bally’s Corp. announced Tuesday morning it agreed to buy the Tropicana Las Vegas from Gaming and Leisure Properties Inc. in a transaction valued at more than $300 million.
The sale-and-leaseback arrangement for the iconic casino now gives the Rhode Island-based gaming company a presence on the Las Vegas Strip. A move Bally’s President and CEO George Papanier said was vital.
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,” Papanier said in a statement.
Under terms of the deal, Bally’s bought the property’s “non-land assets” for $150 million. Bally’s also agreed to lease the land under the Tropicana from GLPI for $10.5 million a year for the next 50 years. That price is subject to increase over the period of the lease.
The two companies will also enter into similar arrangements with Bally’s properties in Black Hawk Colo, and Rock Island, Ill. Those annual lease payments will start at $12 million and go up over time.
The total estimated value of the deal is $308 million. Company officials expect it to close early next year.
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