PROVIDENCE, RI, April 13, 2021 / PRNewswire / – Bally’s Corporation (NYSE: BALY), a leading US omnichannel provider of land-based games and interactive entertainment, today announced that it has agreed to purchase the Tropicana Las Vegas, Nevada casino of Gaming and Leisure Properties, Inc. (“GLPI”), a publicly traded gaming-focused real estate investment trust (“REIT”). by Bally estimates that the transaction will be valued at approximately $ 308 million.
The purchase price of the non-land assets of the Tropicana property is $ 150 million. Besides, by Bally has agreed to lease the land underlying the Tropicana property from GLPI for an initial term of 50 years at an annual rent of $ 10.5 million, likely to increase over time. by Bally and GLPI will also enter into a sale-leaseback transaction involving by Bally Black Hawk, CO and Rock Island, Illinois casino properties for a cash purchase price of $ 150 million payable by GLPI. The lease will have an initial annual fixed rent of $ 12 million, likely to increase over time.
The transaction should pay off by Bally long-term shareholders and will not require any disbursement of by Bally at closing. by Bally and GLPI have agreed to use commercially reasonable efforts to negotiate and enter into definitive documents relating to these transactions as quickly as possible in order to fully reflect the contemplated terms.
Georges papanier, President and CEO of by Bally Corporation, said, “Landing on the Las Vegas Strip is a key step for us. The Strip is visited by over 40 million gamers and guests per year, which we believe will improve dramatically by Bally customer base and player database, as well as unlock marketing opportunities to leverage the iconic Bally’s brand. This expansion will also support the growth and development of our online and interactive businesses. We look forward to exploring a major redevelopment of the property, which we believe will improve its financial profile. “
The Tropicana Las Vegas Hotel and Casino is located at Las Vegas, Nevada on a 35 acre parcel on the corner of Tropicana Boulevard and Las Vegas Boulevard. It includes 1,470 guest rooms, 50,000 square feet of casino space with 1,000 gaming stations, a 1,200-seat performance hall and 100,000 square feet of convention and meeting space.
The transaction is expected to close in early 2022, subject to customary real estate and working capital adjustments, obtaining required regulatory approvals and other customary closing conditions. by Bally is already licensed in Nevada following the recently completed acquisition of MontBleu Resort Casino & Spa.
Jones Day represented by Bally on the operation. GLPI was represented by Goodwin overseer.
On by Bally company
by Bally Corporation currently owns and operates 12 casinos in eight states, one racetrack and 13 licensed OTB licenses in Colorado. With more than 6,000 employees, the Company’s operations include 13,308 slot machines, 460 table games and 3,342 hotel rooms. Following the finalization of current acquisitions, including Tropicana Evansville (Evansville, IN) and Jumer’s Casino & Hotel (Rock Island, Illinois), as well as the construction of a land-based casino near the Nittany shopping center in State College, Pennsylvania, by Bally will own and operate 15 casinos in 11 states. by Bally also maintains a multi-year market access partnership with Elite Casino Resorts through which it will offer mobile sports betting in Iowa, as well as a temporary sports betting license to conduct online sports betting in the Commonwealth of Virginia. Its shares trade on the New York Stock Exchange under the symbol “BALY”.
Caution Regarding Forward-Looking Statements
This document includes forward-looking statements within the meaning of securities laws. Forward-looking statements are statements about matters that are not historical facts, and include statements about by Bally plans, goals, expectations and intentions.
Forward-looking statements are not guarantees and are subject to risks and uncertainties. Forward-looking statements are based on by Bally current expectations and assumptions. Even if by Bally believes that its expectations and assumptions are reasonable at this time, they should not be construed as statements which by Bally expectations will be met. Actual results may vary considerably. Forward-looking statements speak only at the time of writing of this document and by Bally does not undertake to update or revise them as new information becomes available, except as required by law.
Important factors beyond those that apply to most businesses, some of which are beyond by Bally control, which could cause actual results to differ materially from our expectations and assumptions include, but are not limited to:
- uncertainties surrounding the COVID-19 pandemic, including limitations on by Bally operations, increase in costs, change in customer attitude, impact on by Bally employees and the continued impact of COVID-19 on general economic conditions;
- unforeseen costs, integration difficulties and other events impacting by Bally recently completed and proposed acquisitions and by Bally ability to realize expected benefits;
- risks associated with by Bally rapid growth, including those that affect customer and employee retention, onboarding and controls, and whether by Bally the recently announced combination with Gamesys will be completed and its completion schedule;
- risks linked to the impact of the digitization of gaming on by Bally casino operations, by Bally expansion into iGaming and sports betting and the highly competitive and rapidly changing aspects of by Bally new interactive businesses in general;
- the very significant regulatory restrictions applicable to by Bally, including compliance costs;
- restrictions and limitations in agreements governing by Bally debt could significantly affect by Bally ability to operate our business and cash flow; and
- other risks identified in part I. Point 1A. “Risk factors” of by Bally Annual report on Form 10-K for the year ended December 31, 2019 as filed with the SEC on March 13, 2020 and other documents filed with the SEC.
The foregoing list of important factors is not exclusive and does not include issues such as changes in general economic conditions which significantly affect all gaming businesses.
You should not place undue reliance on by Bally forward-looking statements.
Executive Vice President and Chief Financial Officer
Richard goldman / David Gill
646-847-6102 / 917-842-5384
THE SOURCE by Bally company