Bally's buying Tropicana hotel in Las Vegas

FILE - In this Aug. 4, 2015, file photo, sunlight illuminates a sign at the Tropicana hotel and casino in Las Vegas.  The Tropicana Las Vegas Hotel and Casino is being sold. Bally’s Corp. announced Tuesday, April 13, 2021,  it will acquire the iconic Las Vegas Strip property from Gaming and Leisure Properties Inc. for about $308 million.(AP Photo/John Locher,File)
FILE - In this Aug. 4, 2015, file photo, sunlight illuminates a sign at the Tropicana hotel and casino in Las Vegas. The Tropicana Las Vegas Hotel and Casino is being sold. Bally’s Corp. announced Tuesday, April 13, 2021, it will acquire the iconic Las Vegas Strip property from Gaming and Leisure Properties Inc. for about $308 million.(AP Photo/John Locher,File)

LAS VEGAS -- The Tropicana Las Vegas Hotel and Casino, a Sin City namesake, is being sold to a new entrant among Las Vegas Boulevard resort owners.

Rhode Island-based Bally's Corp. announced Tuesday that it will acquire the property from Gaming and Leisure Properties Inc. for about $308 million.

The agreement for the nearly 1,500-room hotel, casino, theater and convention property also involves a sale-and-leaseback transaction relating to Bally's Black Hawk, Colo., and Rock Island, Ill., casino properties, the company said.

"Landing a preeminent spot on the Las Vegas Strip is a key step for us," George Papanier, Bally's president and chief executive officer, said in a statement.

Bally's Corp. does not own Bally's Las Vegas on the Strip. That 2,800-room property at Flamingo Road is owned and operated by Caesars Entertainment Inc.

Papanier noted that Las Vegas draws more than 40 million tourists a year and said owning the Tropicana will boost Bally's customer and player databases, unlock marketing opportunities and benefit Bally's online and interactive business.

Bally's also announced a deal to combine with London-based online gambling operator Gamesys Group plc.

Neil Goulden, Gamesys chairman, said in a statement that the recommended cash offer, including a Gamesys fiscal 2020 dividend, provides a 41.2% premium to the Gamesys share price at the time of the original proposal from Bally's. Gamesys shareholders can elect to convert holdings to Bally's shares.

The Bally's-Tropicana transaction is expected to close early next year. The company said the price for Tropicana property non-land assets was $150 million, and Bally's plans to lease the land underlying the Tropicana property from Gaming and Leisure Properties for an initial term of 50 years at $10.5 million in annual rent.

Bally's owns and manages 12 casinos in eight states, including Bally's Atlantic City in New Jersey.

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