Bally’s nearing end of $308M deal to buy Tropicana
Bally’s Corp. is hoping to close its $308 million acquisition of the Tropicana next month, but it doesn’t expect to make any improvements to the property for at least a year.
“I think it’s well-advertised that we intend to develop (the site) at some point in the future,” Lee Fenton, Bally’s CEO, said in the company’s Aug. 5 second-quarter earnings call.
“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,” he said.
Bally’s and real estate investment trust Gaming and Leisure Properties Inc. announced the Tropicana deal in April 2021.
Currently, Penn Entertainment Inc., formerly known as Penn National Gaming, operates the 65-year-old Strip resort, but the real estate is owned by GLPI. Under the Bally’s deal, the company will lease back the property for $10.5 million a year.
The deal requires regulatory approval and could appear on the Nevada Gaming Control Board and Nevada Gaming Commission’s September agendas.
Bally’s, which is not affiliated with the Strip resort with that name, is expected to rename the Tropicana after the acquisition.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.