Bally’s Acquisition Spree Continues With Purchase Of Tropicana Las Vegas

Written By Marc Meltzer on April 13, 2021Last Updated on November 4, 2021

Bally’s Corporation declared this morning that it has agreed to buy the Tropicana Las Vegas casino from Gaming and Leisure Properties, Inc. (GLPI). This acquisition is part of a larger deal that also involves casinos outside Nevada. The company estimates the total value of the transaction to be around $308 million.

The property is not anticipated to change names anytime soon since the deal is set to finalize in early 2022. Bally’s President and CEO, George Papanier, stated:

Securing a prominent position on the Las Vegas Strip is a crucial move for us. The Strip, which attracts over 40 million visitors and players annually, is expected to considerably boost Bally’s customer base and player database. It will also provide us with the chance to capitalize on marketing opportunities to promote the renowned Bally’s brand.

Bally’s (previously known as Twin Rivers) has marked its second property acquisition in Nevada with this deal. Earlier this month, Bally’s finalized a purchase agreement with Caesars for the MontBleu Resort & Casino in Lake Tahoe.

Sportsbook operators in Nevada are expected to introduce a new service in early 2022 for sports bettors.

What’s in the Tropicana deal?

Just like the earlier sale of The Venetian, this isn’t a simple transaction involving all of Tropicana’s assets and land. The buying price for the non-land assets of the Tropicana property is set at $150 million. The land on which the casino stands will remain under the ownership of GLPI.

Bally’s has agreed to a half-century lease for the property, with an annual rent of $10.5 million starting from the closing of the deal next year. Throughout the lease term, GLPI retains the right to modify the property’s rent if needed.

The two companies have intertwined this deal with contracts for other properties outside Las Vegas. They will also participate in a sale-and-leaseback transaction for Bally’s Black Hawk in Colorado, and a property in Rock Island, Illinois. These transactions are anticipated to be finalized in early 2022.

New Bally’s Corporation going all-in on M&A

Despite its name, Bally’s Corporation is not connected to the Las Vegas casino. When Caesars offloaded Bally’s in Atlantic City to Twin River Worldwide, it also sold the Bally’s brand name to Twin River for an added $25 million.

Since being rebranded from Twin River, Bally’s Corporation has been on a rapid expansion. The gaming company positions itself as an “interactive entertainment” firm. Bally’s is constantly broadening its retail casino and online gaming businesses, while also making significant strides in the sports betting industry.

The company is even extending its branding beyond traditional gambling platforms. Last year, it entered into an agreement with Sinclair to rebrand its regional sports networks as Bally’s Sports.

This sports network agreement builds upon the acquisitions of two distinct sports gambling operations. Last year, Bally’s purchased the sportsbook operator Bet.Works and also acquired ownership of the fantasy sports platform, Monkey Knife Fight.

These sports deals are set to intersect as Bally’s also has an agreement with Sinclair to provide sports betting programming on sports and other networks.

Despite the substantial sports betting deals being a significant aspect for Bally’s, the company maintains its foundation in terrestrial casinos. Papanier further stated:

The growth and development of our online and interactive business will also be bolstered by this expansion. We are excited to delve into a considerable redevelopment of the property, which we believe will boost its financial standing.

Today, Bally’s Corporation is establishing one of the most intriguing land-based and online casino operations in the US.

Future of Bally’s Las Vegas

As stated before, Bally’s Corporation does not hold ownership over Bally’s Las Vegas, which still belongs to Caesars. Rumors of the property’s sale have been circulating for some time. Earlier this year, during Caesars’ fourth-quarter earnings call, CEO Tom Reeg expressed expectations of selling an asset in the future.

Caesars has stated that it will not sell Bally’s or any other Las Vegas casino until at least next year. As Bally’s Corp. plans to enter the Las Vegas market next year, it appears that Caesars may need to reconsider the name of its property adjacent to Paris Las Vegas.

This article speculating about the rebranding of Bally’s Las Vegas as Horseshoe Las Vegas might hold some truth, despite not all rumors in Las Vegas turning out to be true. However, for this to happen, Bally’s Corp. would first need to acquire the rights to Bally’s Las Vegas from Caesars, who currently owns both the individual mark and the Horseshoe brand, the original location for the World Series of Poker (WSOP).

The World Series of Poker (WSOP) is provisionally set to occur at the Rio later this year. Despite Caesars selling the Rio in 2019, it still rents the casino and hotel. The present landowner intends to refurbish the property and introduce an additional hotel brand.

There is a chance that everything may align perfectly, allowing for the WSOP to make a return to a new Horseshoe Las Vegas. This would mean a return of the poker event to a casino bearing the same brand it had during its time at Binion’s Horseshoe.

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Marc Meltzer

Marc matured in the harsh neighborhoods of South Bronx. His unusual blend of being a Yankees and Jets devotee explains his frequently divergent perspectives. As a freelance writer and social media advisor, Marc specializes in writing about steak, alcohol, gambling, and Las Vegas, a challenging task that not many can undertake.

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