Ballys has inked an accord to divest its Rhode Island gaming establishments for a substantial one billion dollars, further cementing its alliance with GLP Capital.
Under the terms of the arrangement, GLP Capital, through its Gaming and Leisure Properties (GLPI) subsidiary, will acquire the real estate assets associated with Bally’s Twin River Lincoln Casino Resort and Tiverton Casino Hotel. Rest assured, Bally’s isn’t disappearing anytime soon. They will immediately lease back both locations and maintain control over the day-to-day gaming activities.
This transaction is anticipated to enhance the existing master lease contract between Bally’s and GLPI, contributing an additional $76.3 million in yearly rent. This agreement, with 14 years remaining and renewal possibilities, already encompasses several other Bally’s venues, including Bally’s Dover Casino Resort, Evansville Casino Hotel, Quad Cities Casino Hotel, and Black Hawk Casino.
Bally’s CFO, Bobby Lavan, conveyed his satisfaction with the deal, emphasizing the substantial long-term financial flexibility it provides to the company. This cash injection will bolster Bally’s capital reserves and strategic endeavors, enabling them to seize advantageous opportunities as they arise.
Further solidifying the agreement, GLP has committed to providing up to $200 million as earnest money. This sum will be either applied toward the final acquisition price or reimbursed by December 31, 2023, whichever occurs first.
Global Logistics Properties is entering the gambling industry with a plan to acquire the Hard Rock Hotel & Casino in Mississippi and Tiverton Casino in Rhode Island. This strategic maneuver carries a price tag of $635 million in upfront costs, in addition to a substantial yearly lease payment of $48.5 million. This alternative strategy comes into play should their attempt to purchase Bally’s Twin River Lincoln Casino in Rhode Island encounter any obstacles.
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