Completed transaction
Bally’s Corporation announced this week that the acquisition of the Tropicana Evansville Casino in Indiana is complete. The company acquired the property from Caesars Entertainment, Inc., with the agreement first announced late last year.
The company paid $140m for the property and will now be able to expand its reach in the growing online gaming market of the state. The transaction included providing Bally’s with the unencumbered rights to sports betting and online gaming skins for the Evansville property.
Details of the Tropicana Evansville deal
The sale closed with Bally’s Corporation obtaining the Tropicana’s casino operations, while Gaming & Leisure Properties (GLPI) paid $340m for the casino’s real estate. GLPI is leasing the property to Bally’s for $28m per year, though that figure could increase down the road.
GLPI also bought the real estate associated with the Bally’s Dover Downs casino for $144m and is leasing that back to Bally’s for $12m annually. Both the Evansville and Dover properties are part of a 15-year master lease agreement between GLPI and Bally’s, with four five-year renewal options.
Bally’s Corporation president and chief executive George Papanier commented on the new deal, stating that the closing marks another major accomplishment for the company, as it looks to continue its growth and diversification strategy.
We are excited to welcome the Tropicana Evansville into the Bally’s family”
“We are excited to welcome the Tropicana Evansville into the Bally’s family and look forward to the opportunity to provide our first-in-class land-based and interactive entertainment offerings to the Indiana gaming market,” Papanier said.
The Tropicana Evansville property is a large facility, with a 45,000 square-foot gaming floor. The property is also home to four dining options as well as a race and sportsbook.
Tropicana Las Vegas agreement
In April, Bally’s also announced a deal to buy the Tropicana Las Vegas Hotel and Casino from GLPI for $150m. GLPI will hang onto the land on which the casino is built. Bally’s will also take over the equity interest in the casino held by Penn National, the Tropicana’s current operator.
Bally’s signed a 50-year lease for the new property and will pay GLPI $10.5m annually for the land. The deal also included Bally’s selling real estate assets of casinos it owns in Illinois and Colorado to GLPI for $150m, which basically makes the deal an even swap between the two companies.