Published on: September 16, 2025, 12:21h.
Updated on: September 16, 2025, 12:28h.
- Bally’s operates two casinos in Rhode Island
- The company previously completed a similar property transaction at its Tiverton casino
- Gaming and Leisure Properties is acquiring the asset and leasing it back to Bally’s
Bally’s has announced the sale of its Twin River Lincoln Casino Resort in Lincoln, Rhode Island, to Gaming and Leisure Properties (NASDAQ: GLPI) for an impressive $735 million, a strategic move aimed at reducing their debt.
This regional gaming operator oversees both local casinos in Rhode Island. Through this sale-leaseback (SLB) arrangement, Bally’s successfully extended a $460 million revolving credit facility until October 1, 2028, pushing back an initial due date of October 1, 2026. The Lincoln transaction also enables Bally’s to negotiate a debt reduction with creditors.
“Bally’s has reached an agreement with its RCF lenders that upon finalizing the SLB Transaction, actions will be taken to lower secured debt and outstanding credit facilities by a total of $500 million, beginning with an immediate 7.5% reduction in RCF commitments, bringing the total to about $574 million,” according to an official statement.
Bally’s, under Standard General hedge fund ownership, indicated that receiving consent from a third of its $630 million term loan holders will allow the property sale to advance smoothly.
Bally’s Decision to Sell Rhode Island Casino Aligns with Strategy
The choice to offload the Twin River Lincoln property aligns with Bally’s earlier decision to collaborate with GLPI in 2022, which involved transferring ownership of its two casinos in Rhode Island to the real estate investment trust (REIT).
As per the agreement, GLPI is entitled to acquire Twin River Lincoln by September 30, 2026. Executing this transaction is crucial for ratings agencies’ assessments of Bally’s, and any obstacles could impair financial flexibility, possibly leading to a ratings downgrade.
Neither Bally’s nor GLPI has commented on whether creditors will approve the deal; however, the anticipated cash influx could significantly aid in alleviating Bally’s existing financial burdens.
“If the SLB Transaction is finalized, based on the established amendments with Bally’s RCF lenders, and similarly endorsed by Bally’s term loan lenders, the total balances of Bally’s term loans and first lien notes are projected to decrease from approximately $2.4 billion to around $1.94 billion,” according to the press release.
Bally’s and GLPI Strengthen Their Partnership
In recent years, Bally’s has engaged in numerous sale-leaseback arrangements with GLPI, making it the primary lessor for Bally’s, although the operator remains the owner of certain properties housing its casinos.
The REIT is also the chief financial backer of Bally’s $1.7 billion integrated resort project in Chicago, marking the operator’s most expensive initiative to date.
Sale-leaseback structures are favored within the gaming sector as they allow property sellers to capitalize on their real estate holdings while retaining control of the gaming operations. However, this also results in long-term liabilities due to extended lease contracts in exchange for immediate cash flow. It is estimated that Bally’s will pay GLPI approximately $58.8 million annually in rent for the Lincoln site, excluding additional escalators.