Bally’s Corporation has successfully concluded a significant real estate transaction with Gaming & Leisure Properties (GLPI), a move that underlines the company’s strategic growth plans. The sale-leaseback arrangement involves prime land and real estate assets associated with Bally’s Tiverton Casino & Hotel in Rhode Island and Bally’s Hard Rock Hotel & Casino Biloxi in Mississippi, with a combined value of $635 million.
Transaction Details:
Structured as a tax-free capital contribution, the sale-leaseback deal involves the transfer of ownership of the aforementioned properties to GLPI, while Bally’s retains operational control through a leaseback arrangement. These casino and hotel properties are now incorporated into Bally’s Master Lease with GLPI, marking a noteworthy expansion for Bally’s portfolio. The financial terms of the lease are set to benefit Bally’s with an annual increase of $48.5 million due to this transaction.
Strategic Advantages and Growth:
Bobby Lavan, Chief Financial Officer of Bally’s, expresses the company’s contentment with the completion of this transaction, which aligns with Bally’s growth trajectory. By leveraging the sale-leaseback structure, Bally’s positions itself favorably for ongoing expansion and development opportunities.
Chicago Casino Development:
In another promising development, Bally’s Corporation’s vision for a $1.74 billion casino and resort at the Tribune Publishing site in River West, Chicago, has received final zoning approval from the Chicago City Council. This significant approval paves the way for Bally’s to proceed with its plans to establish a temporary casino in the summer of 2023 and subsequently unveil the permanent site in late 2025 or early 2026.
Proposed Casino and Resort:
The proposed permanent casino, set against the backdrop of the 30-acre Tribune Publishing Center, promises to be a captivating entertainment destination. Envisioned features include 3,400 slots, 170 table games, 500 hotel rooms, a variety of dining establishments, bars, a 3,000-seat theatre, outdoor spaces, and more. Bally’s aims to contribute to the local landscape by creating an integrated and vibrant hub for entertainment and leisure.
Financial Performance and Outlook:
Bally’s Corporation has reported promising financial results for the quarter ended September 30, highlighting its robust performance. Revenue demonstrated a notable 4.7% increase from the previous quarter, reaching $578.2 million. Furthermore, a substantial 83.7% year-on-year revenue growth was observed, reflecting the company’s momentum.
The completion of the sale-leaseback transaction underscores Bally’s Corporation’s strategic approach to growth and expansion, positioning the company for continued success. With its footprint extending to casino properties and development projects, such as the Chicago casino and resort, Bally’s remains committed to enhancing its presence and contributing to the gaming and entertainment landscape. As Bally’s advances its initiatives, it sets the stage for a future defined by innovation, quality, and value for its stakeholders and players alike.