Under the deal, Bally’s will take ownership of all Tropicana Evansville casino operations, as well as unencumbered rights to the facility’s sports betting and online gambling skins.
Tropicana Evansville comprises 79,000sq ft of enclosed space, including 45,000sq ft of casino floor, four dining venues and a race and sportsbook. The complex also includes 11,000sq ft of convention space adjacent to the casino, a Riverfront Event Center, a 243-room hotel tower and a 95-room boutique hotel.
As part of the agreement, an affiliate of Gaming & Leisure Properties Inc (GLPI) acquired the real estate associated with the casino for $340m (£240m/€279m), which it will now lease to Bally’s for $28m per year.
GLPI also purchased the real estate associated with Bally’s Dover Downs casino for $144m in Delaware, which it is leasing back to Bally’s for $12m per year. Both leases are governed by a master lease agreement with GLPI, which will run for an initial 15 years and includes four, five-year options.
Bally’s had agreed to acquire the casino operators for $140m, but as a result of the leasing stricture, Bally’s said no cash outlay was required at the closing of the deal.