Bally’s Corporation declared this morning that it has struck a deal to buy the Tropicana Las Vegas casino from Gaming and Leisure Properties, Inc. (GLPI). This acquisition is part of a larger transaction involving casinos outside Nevada. The total worth of the deal is estimated by Bally’s to be around $308 million.
The property is not expected to change names in the near future, as the deal is projected to conclude in early 2022. George Papanier, the President and Chief Executive Officer of Bally’s, stated:
Securing a prime location on the Las Vegas Strip is a crucial move for us. With over 40 million visitors and players each year, the Strip will considerably boost Bally’s customer base and player database. It also provides us with the chance to exploit marketing opportunities and capitalize on the renowned Bally’s brand.
Bally’s (previously known as Twin Rivers) has secured its second property in Nevada with this deal. Earlier in the month, Bally’s successfully purchased MontBleu Resort & Casino in Lake Tahoe from Caesars.
In early 2022, sports bettors in Nevada should anticipate the introduction of a new sportsbook operator.
What’s in the Tropicana deal?
This deal for all of Tropicana’s assets and land is not as straightforward as The Venetian’s sale earlier this year. The Tropicana property’s non-land assets are priced at $150 million for purchase. The land beneath the casino will remain under the ownership of GLPI.
Bally’s has secured a lease for the property for 50 years. Once the deal is finalized next year, the yearly rent for the new Bally’s will be set at $10.5 million. GLPI retains the authority to modify the rent on the property during the lease period if required.
This deal was entwined with agreements for other properties located outside Las Vegas by the two companies. They also plan to engage in a sale-and-leaseback transaction for Bally’s Black Hawk in Colorado and a property in Rock Island, Illinois. It is anticipated that these transactions will be finalized in early 2022.
New Bally’s Corporation going all-in on M&A
Despite its name, Bally’s Corporation is not associated with the Las Vegas casino. When Caesars divested Bally’s in Atlantic City to Twin River Worldwide, the latter also purchased the Bally’s brand name for an extra $25 million.
Since rebranding from Twin River, Bally’s Corporation has been in swift expansion mode. The company now identifies itself as an “interactive entertainment” business. As it continues to grow its retail casino and online gaming operations, Bally’s is also aggressively venturing into the sports betting sector.
The company is extending its branding beyond conventional gambling platforms. Last year, a deal was inked with Sinclair, allowing the company to rebrand its regional sports networks to Bally’s Sports.
This sports network deal builds upon the acquisitions of two distinct sports gambling operations. Last year, Bally’s purchased the sportsbook operator Bet.Works and also owns the fantasy sports platform Monkey Knife Fight.
Bally’s sports betting programming deal with Sinclair will intersect with all these other sports deals, as it will be offered not only on sports networks but also on other networks.
Despite the major sports betting deals Bally’s has secured, the company maintains its foundation in land-based casinos, according to Papanier. He further stated:
We also anticipate this expansion to bolster the growth and development of our online and interactive business. We are eager to delve into substantial redevelopment of the property, which, we believe, will boost its financial standing.
Bally’s Corporation is currently developing one of the most intriguing land-based and online casino ventures in the US.
Future of Bally’s Las Vegas
As stated earlier, Bally’s Corporation is not the owner of Bally’s Las Vegas, with Caesars continuing to hold ownership despite ongoing rumors of a potential sale. During the fourth-quarter earnings call of Caesars earlier this year, CEO Tom Reeg confirmed that they still plan to sell an asset in the future.
Caesars has announced it will not sell Bally’s or any other Las Vegas casino until at least next year. With Bally’s Corp. set to enter the Las Vegas market next year, it appears that Caesars may need to rebrand its property adjacent to Paris Las Vegas.
This article suggests that there may be truth to the rumor about Bally’s Las Vegas rebranding as Horseshoe Las Vegas, although not all rumors in Las Vegas come true. However, for this to happen, Bally’s Corp. would need to buy the rights to Bally’s Las Vegas from Caesars, who still owns the individual trademark and the Horseshoe brand, the original location of the World Series of Poker (WSOP).
The World Series of Poker (WSOP) is provisionally slated to occur at the Rio later this year. In 2019, Caesars sold Rio but continues to rent the casino and hotel. The current property owner intends to refurbish the place and introduce another hotel brand to the premises.
It’s conceivable that everything could align perfectly, allowing the WSOP to return to a newly established Horseshoe Las Vegas. This would mean the poker event returns to a casino bearing the same brand as it formerly had with Binion’s Horseshoe.
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