Bally’s Corporation has received regulatory approval to take over operations of Tropicana Las Vegas, saying it is considering “the potential for a significant redevelopment,” to make the property more commercially attractive.
The Nevada Gaming Commission’s green light for the project will allow Bally’s to immediately purchase the casino resort from Gaming and Leisure Properties (GLPI) for $308m. PENN Entertainment currently operates the casino.
On top of the $308m sale price for the casino itself, Bally’s has also agreed to buy Tropicana’s non-land-based assets for $150m. It will lease the land under the property from GLPI for an initial term of 50 years at an annual rent of $10.5m, a price which is subject to increase over time.
The Tropicana encompasses a 35-acre parcel on the corner of Tropicana Avenue and Las Vegas Boulevard, prime real estate on the Las Vegas Strip. It boasts 1,470 guest rooms, a 50,000-square-foot casino, a 1,200-seat theater, and 100,000 square feet of convention and meeting space.
Bally’s President George Papanier said that he considered the Tropicana a future “flagship property”. The company will spend three to six months developing a marketing strategy to enhance current performance levels at the Tropicana, which may involve major capital expenditures.
He commented: “In Tropicana’s case, we think we should also evaluate the potential for a complete redevelopment, because of its competitive position in the market right now.
“Bally’s looks forward to bringing its first-in-class interactive technology to Nevada and to leveraging our growing North American interactive segment through our omnichannel approach to maximize the retail database and grow our brand awareness through our relationship with Sinclair.”
Bally’s has a partnership with Sinclair Media, which provides a Bally’s Sports branding presence in 19 regional sports networks.