The real estate trust that owns the land under the former Tropicana hotel-casino said it would not foot the entire bill for a proposed resort project at the site, an indication that its gaming partner may need additional support to make the deal work.
Gaming & Leisure Properties Inc., owner of the 35-acre site at the south end of the Las Vegas Strip where the Trop once stood, told analysts Friday that it would be open to investment in some segments of Bally’s Corp.’s proposed casino complex, but stopped short of committing to broader construction financing.
“It’s unlikely that we’ll fund the entire project, but there are parts of it, for-profit elements, that I think we could participate in,” Peter Carlino, chairman and CEO of GLPI, said Friday morning during a quarterly earnings call.
Rhode Island-based Bally’s Corp. plans to use 26 acres on the site to build a mixed-use development that will include 3,000 hotel rooms, a 2,500-seat theater and 500,000 square feet of retail, restaurant and entertainment space.
Bally’s holds the gaming license and development rights at the site, while GLPI retains ownership of the land under a long-term lease agreement.
“We’re very pleased with what they’ve discovered or what they’ve put out, and we may or may not participate as opportunities arise,” Carlino said of Bally’s pitch. “Keep an eye on Las Vegas as well. It’s in a very good place at the moment.”
Bally’s did not respond to a request for comment on Friday.
Bally’s acquired the Tropicana Las Vegas hotel-casino business from GLPI and its partners for approximately $148 million in cash following a deal that closes in 2022. At the same time, Bally’s entered into a 50-year lease with GLPI for the land under the site, agreeing to pay an initial rent of $10.5 million per year.
Tropicana Las Vegas closed on April 2, 2024, and imploded on October 9, 2024. The Rat Pack-era resort was shut down and demolished to make way for a $2 billion, 33,000-fan Major League Baseball stadium, which will be home to the relocated Athletics in 2028.
Bally’s has previously relied on GLPI for large-scale project financing. Last year, GLPI agreed to provide up to $2.07 billion for Bally’s planned casino resort in Chicago, including $940 million for construction costs, with Bally’s leasing back the land and some real estate interests from GLPI for about $20 million in initial annual rent.
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
