The Nevada Gaming Control Board (NGCB) has given initial approval to Bally’s Corp. for its $308 million acquisition of the Tropicana Las Vegas from Penn Entertainment. The deal will now proceed to the Nevada Gaming Commission (NGC), which will make the final ruling at its next meeting on September 22.
Bally’s officials told the NGCB that it plans to finalize the deal by month’s end. Gaming and Leisure Properties (GLPI), a real estate investment trust, owns the property, and Bally’s will manage the operations of the casino and pay GLPI $10.5 million per year as part of a 50-year lease agreement, subject to increases over time.
George Papanier, Bally’s president, told the Nevada Independent that the company views “ Tropicana Las Vegas as an opportunity for a flagship property for our western region.”
During the recent hearing, NGCB officials had a lot of questions about the company’s interactive division, which was formed as part of a $2 billion merger with U.K.-based Gamesys Group last year. The business is said to operate in numerous “gray” markets internationally.
Bally’s CEO Lee Fenton—who came to Bally’s from Gamesys after the merger—-told officials that the company has the ability to cancel any of its existing contracts with partnered companies if there is any indication that they might “ever compromise our position with any regulator around the world.”
Papanier and Fenton also provided a lot of details about the company’s plan to open a landmark $1.7 billion casino resort in Chicago after winning the sweepstakes for the city’s sole gaming license.
As far as the Tropicana, however, there was no mention of the Oakland A’s and the team’s search for a new stadium—the property has been heavily speculated to be in consideration for a potential relocation, similar to what the Raiders did with Allegiant Stadium.
Bally’s is expected to rebrand the property under its name, and attorneys for the company said that it will develop a definitive marketing plan within 120 days of taking ownership.
