Bally’s Receives Approval To Acquire Tropicana Operations

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

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

Bally’s will operate the Tropicana as the second Nevada property under its management. The company acquired Montebleu in Lake Tahoe last year, which has since been renamed Bally’s Lake Tahoe.

Currently, Bally’s operates 15 physical casinos nationwide. The Bally’s name is on all of them except for one, the Hard Rock Hotel & Casino Biloxi.

The company emerged victorious in a bid to construct a casino in Chicago earlier this year. They plan to inaugurate a temporary structure next year, with the full Bally’s Chicago casino expected to open its doors in 2026.

Different deal structure, Bally’s gets total control

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

Bally’s bought Tropicana for $308 million in April 2021, a deal that has been in progress for a considerable time. The sale was initially anticipated to be finalized in April of this year.

Just to remind you, Bally’s Corp. is not affiliated with Bally’s Las Vegas, which is run by Caesars. The confusion will be reduced soon as Bally’s Las Vegas is set to undergo a rebranding to Horseshoe Las Vegas.

Bally’s is the owner of Tropicana’s operations and the buildings on the land, while the real estate beneath the buildings is owned by Gaming & Leisure Properties (GLPI). For the next 50 years, Bally’s will lease the land from GLPI.

This varies a bit from the sale of Cosmopolitan to MGM Resorts, which only involved operations. Other firms possess the building and land.

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

Bally’s has the option to retain all the existing buildings while constructing additional ones. Alternatively, the company can demolish everything and start building anew from scratch.

The latter may be feasible but it doesn’t seem very plausible. However, should Bally’s decide, introducing a new retail complex or a baseball stadium are both plausible options.

Plans for the Las Vegas Tropicana casino

Bally’s refrained from disclosing extensive details about the Tropicana’s long-term future. However, they did provide some insight into their operating plans for the historic casino located on the Vegas Strip.

Tropicana’s initial plan is straightforward. As mentioned earlier, there are no current plans to rename the Tropicana. The company intends for Tropicana to serve as its main property in the Pacific timezone.

A name change may occur in the future, with a strong possibility of it becoming Bally’s Las Vegas at some point.

For now, Bally’s intends to maintain the status quo at the Tropicana casino, restaurants, and entertainment venues. Regular guests can anticipate seeing many familiar faces, as all Tropicana employees wishing to stay on the property will be retained.

It seems like Tropicana will maintain its hotel partnership with Double Tree for at least one more year.

Tropicana’s casino players club will be replaced by Bally’s Rewards. After the transition, guests will no longer have access to Tropicana/MyChoice.

All members will begin with zero points in Bally’s Rewards. M Resort, being a MyChoice casino, will still allow guests to use points even after the transition to Bally’s Rewards is completed.

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 develop a plan for Tropicana. This plan will cover aspects such as the most effective way to integrate Tropicana with its other nationwide casinos.

Redeveloping Tropicana is the long-term plan

The company will spend another 12-24 months contemplating extensive redevelopment plans for the entire property. Within that period, Bally’s will unveil a redevelopment plan.

In its meeting with the NGC, the company indicated that significant changes are on the horizon for the Tropicana. The property is associated with two distinct developments, both of which may utilize some or all of its land.

Rumors have been circulating that multiple owners of the Tropicana are considering adding retail space to the property, potentially facing the Vegas Strip.

The Oakland A’s have been considering two options on the Vegas Strip for a potential stadium if the team relocates to Las Vegas. One option is land at the Tropicana, while the other is land adjacent to Circus Circus and opposite the Sahara.

By the end of the year, the A’s should make the decision to either stay in Oakland or relocate to Las Vegas.

Look for Bally’s Sportsbook sometime next year

When Bally’s takes over operations, William Hill will still run the Tropicana sportsbook. However, this could change before other aspects of the property.

Bally Bet provides mobile and online sports betting services in six states where online sports betting is legal. The technology used by Bally’s was obtained through the acquisition of bet.works and gamesys.

Running casinos in both the northern and southern parts of Nevada will generate a significant user base, preparing the company to launch its sports betting product in the Silver State.

Bally’s does not run its retail sportsbook in any of its national properties. It relies on external vendors such as William Hill to operate sportsbooks in states where sports betting is legal. For instance, FanDuel is in charge of the retail sportsbook at Bally’s Atlantic City.

The company will need time to establish operations in Nevada due to the state’s unique sports betting regulations compared to the rest of the country.

Bally’s sportsbook doesn’t have a definite launch date in Las Vegas yet. The company plans to submit a sportsbook application to the NGCB between 60 and 120 days post the closure of the deal.

Given this timeline, Bally’s is expected to submit its sportsbook application for approval by February. It wouldn’t be surprising if it becomes available for gamblers within the casino and through a new mobile sports betting app before 2025 concludes.