Caesars Entertainment has closed the sale of Tropicana Evansville to Gaming & Leisure Properties and Bally’s Corporation for $480m, with the latter also gaining rights to the properties sports betting and igaming skins.
Bally’s acquired the Tropicana Evansville for $140m, with the transaction seeing GLPI gain the real estate associated with the venue for $340m, which it is leasing to Bally’s for $28 million per year, subject to escalation.
George Papanier, president and CEO of Bally’s, commented: “The Tropicana Evansville acquisition closing marks another major accomplishment in what has already been a truly remarkable year for Bally’s.
“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.”
Furthermore, the real estate investment trust has 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.
Peter Carlino, chairman and CEO of GLPI, explained: “We are pleased to add these high-quality regional assets to our portfolio, expand our roster of operators, and gain geographic exposure to a new state.
“Bally’s is one of the nation’s most dynamic regional gaming operators and we look forward to further supporting the execution of their growth plans. In particular, we look forward to adding their Mardi Gras and Golden casinos in Blackhawk, Colorado and their Jumer’s Casino and Hotel in Rock Island, Illinois to our existing master lease as we further expand our partnership.”
Tropicana Evansville was the first casino in Indiana to move from a riverboat vessel to a landside facility in 2017. The property, located on approximately 20 acres along the Ohio river in Vanderburgh County features 46,265 square feet of casino space, 1,145 gaming machines, 41 table games, 338 hotel rooms, and approximately 47,000 square feet of meeting space, and a sportsbook.
Dover Downs Casino and Hotel is situated on approximately 70 acres in Delaware’s capital city. The property features approximately 145,000 square feet of casino space, 2,188 video lottery terminals, 38 table games, 500 hotel rooms, a race book, and a sportsbook.