Bally’s Corporation Friday announced it has completed its acquisition of the Tropicana Evansville casino operations from Caesars Entertainment. Bally’s also acquired the unencumbered rights to the operation’s sports betting and igaming skins, giving the gaming operator more access to the Indiana gambling market.
“The Tropicana Evansville acquisition closing marks another major accomplishment in what has already been a truly remarkable year for Bally’s,” said Bally’s President and CEO George Papanier in a statement. “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.”
Tropicana Evansville opened in 1995 as Casino Aztar, a riverboat casino, and moved on land in 2017.
The transaction is for $140 million. An affiliate of Gaming & Leisure Properties, a real estate investment trust focused on acquiring real property assets leased to gaming operators, acquired the real estate associated with the Tropicana Evansville casino for $340 million. GLPI is leasing back the real estate to Bally’s for $28 million per year, subject to escalation.
No cash outlay was required by Bally’s at closing. Bally’s expects this transaction to be immediately accretive to earnings.
GLPI also acquired the real estate associated with Bally’s Dover Downs casino for $144 million, which it is leasing back to Bally’s for $12 million 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.
Bally’s has made numerous deals this year, striking partnership agreements with a FanDuel sportsbook in Atlantic City, the NBA, the NHL, and becoming the authorized gaming operator of Major League Baseball. The Rhode Island-based gaming operator also acquired MontBleu Resort Casino in Lake Tahoe, Nevada, from Caesars Entertainment; launched Bally Bet, its mobile sportsbook, in Colorado; and finalized its acquisition of betting platform provider Bet. Works.
Tropicana Evansville features 79,000 square feet of enclosed space, including a 45,000 square-foot casino floor, four dining options, and a race and sportsbook. There is 11,000 square feet of convention space next to the casino, and the Riverfront Event Center across the street has 10,000 square feet of convention space overlooking the Ohio River. Accommodations include a 243-room hotel tower and a 95-room boutique hotel.
