Tropicana Las Vegas Sold to Bally’s For $150 Million
Bally’s now officially has a presence in Las Vegas. No, we are not talking about Bally’s Las Vegas that’s owned by Caesars Entertainment. Rather, we are talking about Bally’s, the company. News broke on Tuesday that the Tropicana in Las Vegas is now owned by Bally’s, formerly known as Twin River Worldwide Holdings.
Bally’s Buys Tropicana Las Vegas for $150 Million
Since Twin River Worldwide Holdings purchased the Bally’s brand from Caesars, the company has been active in acquiring properties in the United States. One area that the company had yet to expand into was Las Vegas. Many assumed that the company would buy Bally’s Las Vegas, but that did not come to fruition.
Rather, the company purchased the Tropicana Las Vegas Hotel and Casino from Gaming and Leisure Properties Inc. for $150 million. If that price sounds a bit low, that’s because the company only purchased the business. The physical property will continue to be owned by Gaming and Leisure.
Ballys selling some properties only to still manage them to find money for to acquire Tropicana in Las Vegas for $150 million https://t.co/UsQXtWuBNa
— NETime Gambling (@NETimeGambling) April 14, 2021
Bally’s has also entered into a lease agreement that will see the property lease the property for at least the next 50 years. The company will pay $10.5 million in rent for the property with future rent increases possible.
According to Bally’s CEO George Papanier, “Landing a preeminent spot on the Las Vegas Strip is a key step for us.” Tropicana was first opened in 1957 and has been in operation since. The company has had a storied past, including ties to organized crime. However, those days are long behind the property and the casino looks to move toward the future.
Expansion Continues Since Bally’s Brand Purchase
Back in October 2020, Twin River Worldwide Holdings purchased the Bally’s brand from Caesars Entertainment. Since that time, the company has been focused on expansion. Starting with a pair of casinos in Rhode Island, the company quickly expanded to Atlantic City and beyond.
Now, the company owns eight properties throughout the United States. However, it seems that the company is focusing more on casino operations rather than being property holders.
I figured it out. Caesars entertainment owns the hotel Ballys in Las Vegas. The company Ballys Corporation just bought the tropicana from SPLI, who got it from Penn National, who got it from Caesars originally hahaha.
— TKF1FAN137 (@TKF1FAN137) April 13, 2021
Part of the deal struck for the Tropicana includes sales of physical property for its Bally’s Black Hawk Casino in Colorado and Rock Island in Illinois. Gaming and Leisure purchased the properties from Bally’s for $150 million. However, Bally’s will continue operating at both locations. As such, Bally’s will pay $12 million annually for the casinos.
Other acquisitions are ongoing for the company and by the time the company is done with its current deals, it will operate 15 casinos in 11 states.
Bally’s strategy of renting out properties rather than maintaining them is a good one over the long term. The company is only responsible for operating the property while Gaming and Leisure is on the hook for the upkeep.
Bally’s Casinos Could Provide a Friendlier Alternative
While I have not played at a Bally’s property since Twin Rivers purchased the brand, I am looking forward to experiencing their properties. Over the years, casino gambling has become less customer-friendly as massive corporations like Caesars focus more on profits than people. I’ve found in the past that smaller companies are much more user-friendly than big companies.
Bally’s is an established brand that has successfully broken away from the Caesars brand. The company will be focused on establishing itself as a premier alternative to other big-name US casino giants. This will usually be to the benefit of players.
If you want to see more companies like Bally’s succeed, then you need to go out and support them. With the company soon operating in 11 states, chances are that it is just a reasonable drive to a local casino. Give them a try and see whether your experience is superior.