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Bally’s Corporation has finalised the long mooted acquisition of Tropicana Las Vegas Hotel and Casino from Gaming and Leisure Properties and PENN Entertainment for $308m.

The real estate investment trust offloaded non-land real estate assets as PENN unloaded outstanding equity interests, with GLPI to receive a cash payment of $148m for the purchase of the Tropicana property’s non-land assets.

Pursuant to the terms of the original agreement, GLPI retained its ownership of the land and, concurrent with the closing, entered into a 50-year ground lease with Bally’s, subject to extension upon Bally’s achieving a capital investment threshold, for an initial annual rent of $10.5m

As local media outlets reported that the company plans to utilise the property as its flagship operations in the western region of the US, completion concluded an agreement that was first detailed in April 2021.

As part of the partnership that was first disclosed, Bally’s also expanded its partnership with GLPI regarding a sale-and-leaseback transaction relating to Bally’s Black Hawk, Colorado, and Rock Island, Illinois, casino properties for a cash purchase price of $150m. It was said that the lease would have initial annual fixed rent of $12m.

George Papanier, President and Chief Executive Officer of Bally’s, said at the time of the acquisition first being detailed: “Landing a preeminent spot on the Las Vegas Strip is a key step for us. 

“The Strip is visited by over 40 million players and guests per year, which we believe will significantly enhance Bally’s 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 business. We look forward to exploring significant redevelopment of the property, which we believe will enhance its financial profile.”

The Tropicana Las Vegas Hotel and Casino is on a 35-acre parcel and includes 1,470 guest rooms, 50,000 square feet of casino space with 1,000 gaming positions, a 1,200 seat performance theatre and 100,000 square feet of convention and meeting space.