In a unanimous recommendation, the Nevada Gaming Control Board has approved and licensed Bally’s Corporation for the acquisition of the iconic Tropicana Las Vegas casino and hotel on the Strip. The deal, which was initiated in April 2021 when Gaming and Leisure Properties sold the property to Bally’s for $308 million, is now awaiting final approval from the Nevada Gaming Commission at its meeting on September 22. The acquisition also involves a sale-and-leaseback transaction encompassing Bally’s Black Hawk, Colorado, and Rock Island, Illinois properties. Once approved, the Tropicana Las Vegas property will be rebranded under the Bally’s name, further expanding the company’s presence in the casino industry.
Bally’s Growth Strategy and Flagship Property:
George Papanier, President of Bally’s Corporation’s casino resort division, highlighted the company’s commitment to expanding its footprint in the gaming market over the past few years. Acquiring Tropicana Las Vegas presents an exciting opportunity for Bally’s to establish a flagship property in the western region, solidifying its presence in the highly competitive Las Vegas market.
Nevada Gaming Control Board’s Scrutiny and Compliance Measures:
During the hearing, the Nevada Gaming Control Board members closely examined Bally’s compliance program, particularly inquiring about the company’s interactive division. George Papanier addressed these concerns and provided insights into Bally’s rapid development, including their successful bid to develop the first hotel-casino venue in downtown Chicago. The Control Board expressed its satisfaction with the responses and expressed confidence in the company’s ability to adhere to regulations.
Marketing and Database Transition:
As part of the acquisition process, Bally’s has assured that there will be no changes to the Tropicana’s restaurant operations. However, the casino will eventually undergo a transition to the Bally’s player database, enhancing customer loyalty programs and engagement. The company, with the guidance of Dan Reaser, outside legal counsel for Bally’s, is developing a comprehensive marketing plan for the initial 90 to 120 days of ownership, aiming to attract and retain a broad customer base.
Nevada’s Gaming Revenue Performance:
In July, Nevada’s casinos continued their streak of surpassing $1 billion in gaming revenue for the 17th consecutive month. Although the revenue of $1.31 billion in July 2022 showed a slight 3.2% decline year-on-year, it reflected a remarkable 28.4% increase compared to pre-pandemic figures in July 2019. Clark County emerged as the leading revenue generator, reporting $1.12 billion in gaming revenue, with the Las Vegas Strip contributing $773.3 million. Despite slight declines in certain areas, Nevada’s gaming industry remains resilient and displays signs of strong recovery.
Bally’s Corporation’s potential acquisition of the Tropicana Las Vegas casino and hotel marks a significant milestone in the company’s growth strategy. Pending final approval from the Nevada Gaming Commission, the deal will expand Bally’s footprint in the competitive Las Vegas market and provide an excellent opportunity to establish a flagship property in the western region. The company’s commitment to compliance and responsible gaming, coupled with its marketing initiatives and customer-centric approach, positions Bally’s for further success in the gaming industry. Additionally, Nevada’s continued streak of impressive gaming revenue performance indicates a robust recovery, offering positive prospects for the state’s gaming operators.