Bally’s Corp. has announced that it completed its acquisition of the Tropicana Evansville casino operations in Indiana from Caesars Entertainment, Inc.
As part of the transaction, Bally’s also acquired the unencumbered rights to the Evansville operations’ sports betting and iGaming skins, which will provide the company with greater access to the growing Indiana gaming market.
“The Tropicana Evansville acquisition closing marks another major accomplishment in what has already been a truly remarkable year for Bally’s,” said George Papanier, president and chief executive officer of Bally’s Corp.
“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.”
As previously announced, Bally’s acquired the Tropicana Evansville for $140 million. As part of the transaction, an affiliate of Gaming & Leisure Properties, Inc. acquired the real estate associated with the Tropicana Evansville casino for $340 million, which it is leasing to Bally’s for $28 million per year, subject to escalation.
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.
As a result of this structure, no cash outlay was required by Bally’s at closing. Bally’s expects this transaction to be immediately accretive to earnings.
Tropicana Evansville maintains 79,000 square feet of enclosed space, including 45,000 square feet of casino floor, four dining venues, a race and sportsbook, and back-of-house space. The complex also includes 11,000 square feet of convention space adjacent to the casino, and a Riverfront Event Center located across the street, which includes 10,000 square feet of convention space overlooking the Ohio River. Accommodations include a 243-room hotel tower and a 95-room boutique hotel.
While it was anticipated that the Evansville property would be rebranded as a Bally’s, the acquisition of the Las Vegas Tropicana may give the company second thoughts.
