Bally’s Corporation on Friday said it has completed its acquisition of the Tropicana Evansville casino’s operations from Caesars Entertainment, Inc.
As part of the transaction, Bally’s gained the unencumbered rights to the Evansville operation’s sports betting and online gaming skins, which the company said will provide it with greater access to the growing Indiana gaming market.
As previously announced, Bally’s acquired Tropicana Evansville for $140m. As part of the transaction, an affiliate of Gaming & Leisure Properties, Inc., (GLPI) acquired the real estate associated with the Tropicana Evansville casino (pictured) for $340m, which it is leasing to Bally’s for $28m per year, subject to escalation.
GLPI also acquired the real estate associated with Bally’s Dover Downs casino for $144m, which it is leasing back to Bally’s for $12m per year, subject to escalation. Both leases are governed by a master lease agreement with GLPI, which has an initial term of 15 years and includes four five-year options.
As a result of this structure, no cash outlay was required by Bally’s at closing. Bally’s said it expects this transaction to be immediately accretive to earnings.
“The Tropicana Evansville acquisition closing marks another major accomplishment in what has already been a truly remarkable year for Bally’s,” George Papanier, president and CEO of Bally’s Corporation, said in a statement. “As we continue to implement our growth and diversification strategy with precision, we are excited to welcome the Tropicana Evansville into the Bally’s family and look forward to the opportunity to provide our first-in-class land-based and interactive entertainment offerings to the Indiana gaming market.”
In a separate press release, Tom Reeg, CEO of Caesars Entertainment, Inc., said, “I want to thank the team members of Evansville for all of their hard work and wish them continued success under Bally’s leadership.”
Tropicana Evansville maintains 79,000 square feet of enclosed space, including 45,000 square feet of casino floor, four dining venues, a race and sportsbook, and back of house space. The complex also includes 11,000 square feet of convention space adjacent to the casino, and a Riverfront Event Center located across the street, which includes 10,000 square feet of convention space overlooking the Ohio River. Accommodations include a 243-room hotel tower and a 95-room boutique hotel.
