Gaming and Leisure Properties Inc. announced Friday that it has completed the acquisition of the land and real estate assets of Tropicana Evansville in Indiana from Caesars Entertainment and The Dover Downs Hotel and Casino in Delaware from Bally’s Corp. for $484 million.
The Wyomissing-based real estate investment trust said in a press release that it funded the transaction with cash which was in part generated by its equity raise completed on Oct. 29.
Additionally, Gaming and Leisure said it entered into a triple-net master lease agreement with Bally’s. The master lease has an initial total annual cash rent of $40 million and an initial term of 15 years with four 5-year tenant renewal options, as well as annual lease escalation terms based on the Consumer Price Index, with a 1% floor and 2% ceiling, subject to CPI meeting a .5% threshold.
“We are pleased to add these high-quality regional assets to our portfolio, expand our roster of operators, and gain geographic exposure to a new state,” said Peter Carlino, chairman and CEO of GLPI, said in a statement. “Bally’s is one of the nation’s most dynamic regional gaming operators and we look forward to further supporting the execution of their growth plans. In particular, we look forward to adding their Mardi Gras and Golden casinos in Blackhawk, Colo. and their Jumer’s Casino and Hotel in Rock Island, Ill. to our existing master lease as we further expand our partnership.”
Carlino said he was encouraged by recent operating results across GLPI’s portfolio as the national opens up from the coronavirus pandemic. He said after that $6.1 million in additional rent was generated after May 1 by rent escalator agreements with Wyomissing-based Penn National Gaming Inc. and Boyd Gaming Corp.
Tropicana Evansville was the first casino in Indiana to move from a riverboat vessel to a landside facility in 2017. The property, located on approximately 20 acres along the Ohio river in Vanderburgh County features 46,265 square feet of casino space, 1,145 gaming machines, 41 table games, 338 hotel rooms, and approximately 47,000 square feet of meeting space, and a sportsbook.
Dover Downs Casino and Hotel is situated on approximately 70 acres in Delaware’s capital city. It is accessible to the Northeast Corridor and proximate to beach communities on the Eastern Shore. The property features approximately 145,000 square feet of casino space, 2,188 video lottery terminals, 38 table games, 500 hotel rooms, a race book, and a sportsbook.