Bally’s Receives Approval To Acquire Tropicana Operations

Written By Marc Meltzer on September 12, 2022Last Updated on October 3, 2022
Tropicana casino in Las Vegas may soon have a new operator, Bally's

The Nevada Gaming Control (NGC) sanctioned the sale of Tropicana to Bally’s Corp, granting them a license to operate it. The deal was finalized by Bally’s on Sept. 26.

Bally’s currently states that the Tropicana name will be preserved.

Bally’s will operate Tropicana as its second property in Nevada, following their acquisition of Montebleu in Lake Tahoe last year. The northern Nevada property is presently known as Bally’s Lake Tahoe.

Bally’s presently runs 15 physical casinos across the country. Except for the Hard Rock Hotel & Casino Biloxi, all carry the Bally’s name.

The company secured a contract to construct a casino in Chicago earlier this year. They plan to inaugurate a temporary structure next year, with the permanent establishment, Bally’s Chicago, set to open its doors in 2026.

Different deal structure, Bally’s gets total control

The sale framework for Tropicana differs from recent casino deals in Las Vegas. This transaction will grant Bally’s complete authority over Tropicana’s long-term future.

Bally’s acquisition of Tropicana for $308 million has been in progress for a significant period, having been initiated in April 2021. The sale, initially anticipated to finalize this April, has been a long time coming.

Just as a reminder, Bally’s Corp. is not affiliated with Bally’s Las Vegas, which is run by Caesars. The confusion will soon be cleared up as Bally’s Las Vegas is set to undergo a rebranding and will be known as Horseshoe Las Vegas.

Bally’s is the owner of both Tropicana’s operations and the structures located on the land, while the real estate beneath these structures is owned by Gaming & Leisure Properties (GLPI). For the use of this land, Bally’s will be paying rent to GLPI for the upcoming 50 years.

This differs slightly from the sale of Cosmopolitan to MGM Resorts, which only involved operations. The building and land are owned by other companies.

The sales structure of The Mirage and Venetian recently is similar to that of the Cosmopolitan-MGM sale.

Bally’s has the option to retain all the existing buildings and add more structures. Alternatively, the company could demolish everything and construct anew from the ground up.

The latter option is feasible, though it doesn’t appear highly realistic. On the other hand, Bally’s has the possibility to add either a new retail complex or a baseball stadium if they decide to do so.

Plans for the Las Vegas Tropicana casino

Bally’s did not provide many details about the long-term future of the Tropicana. However, they did offer some understanding of how they plan to run the historic Vegas Strip casino.

The initial Tropicana plan is straightforward. As noted earlier, the company has no intention of renaming Tropicana at this time. The aspiration is for Tropicana to serve as the company’s flagship property in the Pacific timezone.

A name change could occur in the future, with the likelihood of it becoming Bally’s Las Vegas at some point.

At present, the Tropicana casino, restaurants, and entertainment venues will continue to operate as usual. Regular patrons will still encounter familiar faces as Bally’s intends to retain all Tropicana employees who wish to stay on the property.

It appears that Tropicana will continue its hotel partnership with Double Tree for at least another year.

Bally’s Rewards will replace the Tropicana/MyChoice as the casino players club at the Tropicana. After the transition, guests will not be able to use Tropicana/MyChoice.

Every member will begin with zero points in Bally’s Rewards. Even after the transition to Bally’s Rewards, M Resort remains a MyChoice casino where guests can utilize their points.

Penn Entertainment (formerly Penn National Gaming), the current owner, will undergo a six-month transition in operations.

After the deal is finalized, Bally’s will require 90-120 days to formulate a strategic plan for Tropicana. This plan will encompass backend aspects such as optimal methods for integrating Tropicana with its other nationwide casinos.

Redeveloping Tropicana is the long-term plan

Bally’s will reveal a redevelopment plan sometime within the next 12-24 months as the company considers larger redevelopment plans for the entire property.

In its meeting with the NGC, the company indicated upcoming major changes at the Tropicana. The property has been associated with two distinct developments that may potentially utilize some or all of its land.

Rumors have been circulating about various Tropicana owners considering the addition of retail space to the property, potentially facing the Vegas Strip.

The Oakland A’s have been considering two options for a stadium if they relocate to Las Vegas. One option is land at the Tropicana, and the other is land adjacent to Circus Circus and opposite the Sahara. Both are located on the Vegas Strip.

By the end of the year, the A’s should make a decision on whether to remain in Oakland or relocate to Las Vegas.

Look for Bally’s Sportsbook sometime next year

When Bally’s assumes control, William Hill will persist in running the Tropicana sportsbook. This situation may alter before other aspects of the property.

Bally Bet provides online and mobile sports betting in six states where it is legal. The technology Bally’s uses for this was acquired through the purchase of bet.works and gamesys.

The company will be prepared to launch its sports betting product in the Silver State by establishing casinos in both northern and southern Nevada to build a substantial user base.

Bally’s does not provide a retail sportsbook in any of its nationwide properties. Instead, external vendors like William Hill run sportsbooks in other states where betting on sports is legal. For instance, FanDuel manages the retail sportsbook located within Bally’s Atlantic City.

Setting up operations in Nevada will require some time for the company, due to the state’s distinctive sports betting regulations compared to the rest of the country.

Bally’s sportsbook in Las Vegas does not have a precise launch date yet. The company anticipates submitting a sportsbook application to the NGCB 60-120 days post deal closure.

Given this timeline, Bally’s is expected to submit its sportsbook application for approval by February. It is anticipated that bettors could use it within the casino and on a new mobile sports betting app before 2025 concludes.

Photo by John Locher/Associated Press
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Marc Meltzer

Marc spent his early years navigating the challenging environment of the South Bronx. His unconventional mix of loyalty towards the Yankees and Jets reflects his unique perspective. As a freelance writer and social media consultant, Marc’s job involves penning pieces about steak, beverages, gambling, and the city of Las Vegas – a difficult but necessary role.

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