The Tropicana Las Vegas is sold to Bally's Corp.

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The Tropicana Las Vegas will be the first in the Bally's Corp. portfolio.
The Tropicana Las Vegas will be the first in the Bally's Corp. portfolio.

Bally's Corp. has agreed to acquire the Tropicana Las Vegas Hotel and Casino from Gaming and Leisure Properties Inc. (GLPI) as part of a deal valued at approximately $308 million. 

Under the transaction, Rhode Island-based Bally's will pay $150 million for the Tropicana's non-land assets, with GLPI to retain ownership of the land underlying the Tropicana property. Bally's has agreed to lease the land from GLPI for an initial term of 50 years at an annual rent of $10.5 million.

The transaction is expected to close early next year.

"Landing a preeminent spot on the Las Vegas Strip is a key step for us," George Papanier, president and CEO of Bally's Corp., said in a statement. "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."

Papanier added that the company would consider a "significant redevelopment of the property," in an effort to "enhance its financial profile."

Spanning 35 acres at the corner of Tropicana Boulevard and Las Vegas Boulevard, the Tropicana Las Vegas houses 1,470 guestrooms, 50,000 square feet of casino space, a 1,200-seat performance theater and 100,000 square feet of convention and meetings space.

The property is Bally's first in Las Vegas and joins Bally's existing network of 12 casinos across eight states, which includes properties like the Bally's Atlantic City in New Jersey, the Eldorado Resort Casino Shreveport in Louisiana and the Hard Rock Hotel & Casino in Biloxi, Miss.

Bally's also recently closed on its purchase of Nevada's MontBleu Resort Casino & Spa, located near Lake Tahoe, and is already licensed in the state.

Additionally, the company is currently in the process of completing several other pending acquisitions and expansions, including that of the Tropicana Evansville in Indiana, Jumer's Casino & Hotel in Rock Island, Ill., and the construction of a land-based casino in State College, Pa. Once those deals and projects are completed, Bally's will own and manage 15 casinos across 11 states.

Bally's Corp., incidentally, is not affiliated with the Bally's Las Vegas property on the Strip. That is owned by Caesars Entertainment, which sold off the Bally's brand but retained the name of the casino-hotel.

Concurrent with the Tropicana transaction, Bally's and GLPI announced that they have entered into similar sale-and-leaseback transactions at Bally's Black Hawk, Colo., and Rock Island casino properties. Those two deals will comprise a cash purchase price of $150 million, payable by GLPI, with the lease to have an initial annual fixed rent of $12 million.

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