Neither company specified which casinos in Black Hawk, but because of that, the assumption here is that Bally’s is selling both the Golden Gates Casino and the Golden Gulch Casino. In fact, in Tuesday’s press release, Bally’s said that it will not have to pay any cash at closing. The total sales price for the properties is $150m, so it is effectively an even swap from a dollars standpoint. GLPO chairman and CEO Peter Carlino called the deal a “win-win,” adding: “….our conversion of the Tropicana into an income producing ground lease solidifies the value creation that we hoped for in originally structuring the transaction with Penn National.” Bally’s selling other casinos to GLPIīut the Tropicana Las Vegas is not the only casino involved in the transaction, hence why Carlino called it “complex.” Bally’s is sending casinos back the other direction, selling the real estate assets of its casinos in Black Hawk, Colorado and Rock Island, Illinois to GLPI. Landing a preeminent spot on the Las Vegas Strip is a key step for us.”īally’s president and CEO George Papanier hit on one of the most attractive parts of the purchase, saying: “Landing a preeminent spot on the Las Vegas Strip is a key step for us,” adding that the company will look into “significant redevelopment of the property.”

It is expected that Bally’s will also operate the Tropicana. Here, Bally’s will own the casino, but pay rent for the land. This leaseback arrangement has been the norm in casino transactions over the last few years, though in most other cases, it is the property seller paying rent for the casino in order to continue operating it.

With GLPI holding on to the land, Bally’s will enter into a 50-year lease for its new property, paying GLPI $10.5m per year. Penn National is the Trop’s current operator. Bally’s is also taking over Penn National’s remaining equity interest in the Tropicana. The transaction includes just the non-land real estate GLPI will keep the land on which the Tropicana is built. (GLPI) has agreed to sell the Tropicana Las Vegas Hotel and Casino to Bally’s Corporation for $150m. In a deal that the company’s chief executive describes as “complex,” Gaming and Leisure Properties, Inc.

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