Ballys is divesting its Rhode Island holdings in a transaction valued at a billion dollars. They’ve inked a sale-leaseback arrangement with Gaming and Leisure Properties (GLPI), a prominent entity in the casino real estate sector. This transaction encompasses both the Twin River Lincoln Casino Resort and the Tiverton Casino Hotel.
Rest assured, Ballys isn’t departing Rhode Island! They’re simply unlocking some capital. They’ll continue managing all gaming activities as before.
This agreement is essentially an extension of an existing pact between Bally’s and GLPI. Consider it akin to incorporating two additional properties into a lease that already includes venues like Dover Downs, Evansville, and a few others. This translates into a substantial increase in rent for GLPI – an additional $76.3 million annually.
This maneuver makes strategic sense for Bally’s. As their CFO Bobby Lavan articulated, this provides them with significant financial agility to invest in emerging prospects and advance their strategic objectives.
Moreover, GLP is providing them with a considerable sum upfront – up to $200 million by year’s end. That’s a welcome windfall!
Gaming and Leisure Properties is making a significant investment in the gambling industry. They plan to spend $635 million to acquire the Hard Rock Hotel & Casino located in Biloxi, Mississippi, along with some land in Tiverton. This transaction also involves an annual lease payment of $48.5 million. However, there’s a condition. This acquisition is contingent upon Bally’s receiving approval to purchase the Twin River Lincoln casino. Should that agreement collapse, GLP has a contingency plan prepared for implementation.
