Bally’s Corporation on Tuesday announced its completion of the previously announced acquisition of the Tropicana Las Vegas with Gaming & Leisure Properties Inc. and Penn Entertainment.
Bally’s, GLPI, and Penn completed Bally’s acquisition of the Tropicana’s non-land assets for a cash purchase price of $148 million, payable to GLPI. Bally’s will lease the land underlying the Tropicana property from GLPI for an initial term of 50 years at annual rent of $10.5 million. Bally’s takes over the operation from Penn.
The Nevada Gaming Commission signed off on the deal on Thursday.
The Tropicana sits on a 35-acre parcel on the southeast corner of Tropicana Avenue and Las Vegas Boulevard and is expected to undergo significant redevelopment to make it more competitive on the Strip.
The Tropicana includes 1,470 guest rooms, 50,000 square feet of casino space with 1,000 gaming positions, a 1,200-seat theater, and 100,000 square feet of convention and meeting space.
Bally’s views the Tropicana as a flagship property on the west coast. Executives said they’ll spend 90 to 180 days developing a marketing strategy to enhance performance. They’ll wait 18 to 24 months before coming to a determination on redevelopment.