American betting giant Bally's Corporation has announced that they've come to terms with Gaming and Leisure Properties to purchase the Tropicana Las Vegas for $308 million.
The purchase will include the non-land assets for $150 and the company will lease the land under the Tropicana for 50 years at a rate of $10.5 million. The agreement will also see Bally's and GLPI signing a leaseback deal for the Bally's Black Hawk in Colorado as well as Bally's in Illinois. GLPI will pay $150 million for those properties and lease back to Bally's for $12 million a year.
Commenting on the agreement Bally's CEO George Papanier said, "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 deal is subject to regulatory approval and is expected to close sometime next year. We're following this story and will be updating readers as we learn more.