Bally’s Corporation and Gaming & Leisure Properties (GLPI) announced that the acquisition of the land and real estate assets of Bally’s Tiverton Casino & Hotel in Tiverton, Rhode Island, and Bally’s Hard Rock Hotel & Casino Biloxi in Biloxi, Mississippi by GLPI is now completed for a total consideration of $635 million.
Bally’s Sells Real Estates, Leases Properties
The leaseback transaction was structured as a tax-free capital contribution, Bally’s stated in the press release, outlining that a large portion of the proceeds of the deal will go toward Bally’s Corporation’s debt reduction.
Bally’s chief financial officer Bobby Lavan was “pleased to have completed another transaction with GLPI,” convinced that the latest deal with the real estate investment trust (REIT) “marks an important step” for Bally’s as it ensures the gaming group “is best positioned for continued growth.”
The sale was initially announced in June 2022 as part of a massive sale-and-leaseback deal valued at $1 billion involving Bally’s casinos in Rhode Island, Tiverton Casino and Hotel and Twin River Lincoln Casino, under which GLPI’s operating partner, GLP Capital, will acquire the land and real estate assets of the properties.
Upon transaction close, the newly-acquired properties were added to Bally’s Master Lease with GLPI to expand the total properties under the master agreement to six and the rent Bally’s would pay to GLPI under its Master Lease increased by $48.5 million on an annual basis.
GLPI’s Option to Acquire Bally’s Twin River Casino
As part of the transaction, GLPI can exercise an option to acquire the land and real estate assets of Bally’s Twin River Casino Resort in Lincoln, Rhode Island, for $771 million before the end of 2024, subject to Bally’s consent.
In April last year, Bally’s and GLPI completed a similar sale-leaseback transaction for Bally’s Quad Cities in Rock Island, Illinois, and Bally’s Black Hawk in Black Hawk, Colorado. Both casino properties were acquired for a cash price of $150 million, and the properties were added to Bally’s Master Lease with GLPI, increasing the annual rent by $12 million initially.
As one of the largest casino-entertainment companies globally, Bally’s Corporation owns and manages 15 casinos across 10 US jurisdictions, as well as a horse racetrack in Colorado, and is currently building a temporary casino facility in Chicago, Illinois, and a land-based casino near the Nittany Mall in State College, Pennsylvania.
Bally’s also owns a global online gaming operator brand, Bally’s Interactive International, formerly known as Gamesys Group, a first-in-class sports betting platform, Bally Bet, and an online casino brand, Bally Casino.Come from Online Betting Site