Bally’s Completes Acquisition of Tropicana Las Vegas
Bally’s Corporation, the casino operator, has completed its acquisition of the Tropicana Las Vegas Hotel and Casino for $148 million from Gaming & Leisure Properties (GLPI) and Penn Entertainment.
The acquisition was first announced back in April 2021. It was agreed that Bally’s would pay GLPI and Penn $148 million for the Tropicana’s non-land assets and would lease the land the casino is built on for an initial 50 years at $10.5 million per year
The Tropicana is Bally’s first property on the Las Vegas strip. It include 1,470 guests room, a 50,000 square foot gaming floor, 1,000 gaming positions, and 100,000 square feet of convention and meeting space.
For [Tropicana], we’ve said that we will continue to operate the property. We obviously – I think it’s well-advertised that we intend to develop at some point in the future, but we will run the property on an as-is basis at least for the next 12 months until we have identified the plan and the partnerships that we want going forward.
Bally’s CFO, Bobby Lavan, said that the property needs further development if it is to generate revenue. He said that as it stands today, “the rent associated with it is $22.5 million and it will generate $20 million to $25 million of EBITDAR, so earnings neutral.”
The acquisition comes after Bally’s has had to revise its full year revenue and earnings projections downwards due to poorer than expected results, currency changes, and lower expectations in Atlantic City.
Upon announcing the deal in 2021, then CEO George Papanier said, “Landing a preeminent spot on the Las Vegas Strip is a key step for us. The Strip is visited by over 40 million players and guests per year, which we believe will significantly enhance Bally’s customer base and player database, as well as unlock marketing opportunities to leverage the iconic Bally’s brand.”
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