LINCOLN AND TIVERTON, R.I. — Bally’s Corp. (NYSE: BALY) has agreed to sell two of its casino resorts in Rhode Island to an affiliate of Gaming & Leisure Properties Inc. (NASDAQ: GLPI) for $1 billion.
The properties in question are Bally’s Twin River Lincoln Casino Resort in Lincoln and Bally’s Tiverton Casino & Resort in Tiverton. A timeline for the closing of the sale-leaseback deal was not disclosed.
Under the terms of the agreement, Rhode Island-based Bally’s will continue to operate the gaming operations and will pay a $9 million transaction fee at closing. GLP Capital, the acquiring entity of the Pennsylvania-based REIT, has agreed to pre-fund a deposit of up to $200 million that will be credited or repaid either at closing or on Dec. 31, 2023, whichever comes first.
Ballly’s Twin River Lincoln features 136 hotel rooms and suites and a total of 162,000 square feet of gaming space, including 4,100 slot machines, 125 table games and a sportsbook. In addition, the resort houses four restaurants, three food courts, nine bars, three live entertainment venues, two VIP lounges and a retail store.
Bally’s Tiverton comprises an 83-room hotel and 33,600 square feet of gaming space with 1,000 slot machines, 32 table games, a racebook and a sportsbook. Additional amenities include two full-service restaurants, multiple express dining options, a bar, live entertainment venue and VIP lounge.
The assets will be added to the master lease between GLPI and Bally’s, which has a remaining term of 14 years with four five-year tenant renewal options. The master lease has an incremental annual rent of $76.3 million and includes Bally’s Dover Casino Resort in Dover, Del.; Bally’s Evansville Casino & Hotel in Evansville, Ind.; Bally’s Quad Cities Casino & Hotel in Rock Island, Ill.; and Bally’s Black Hawk Casinos in Black Hawk, Colo.
“This transaction will provide the company with significant long-term liquidity, ensuring that Bally’s is best positioned to continue executing its capital and strategic plan, as well as to capitalize on future opportunities presented in the market,” says Bobby Lavan, CFO of Bally’s.
This is the second headline-grabbing news for Bally’s so far this year. In May, it was announced the company had won a bid to construct a $1.7 billion casino as part of a redevelopment project of the former Chicago Tribune printing plant.
The stock price of Bally’s opened at $20 per share on Friday, July 1, down from $54.56 per share a year ago. The stock price of Gaming & Leisure Properties opened at $45.90 per share on that date, relatively unchanged from $46.45 per share at this time in 2021.
— Taylor Williams