Gaming & Leisure Properties Inc. (GLPI) has announced a limited involvement in the Bally’s Las Vegas project, clarifying that it will not bear the entire financial burden but will selectively invest in certain aspects of the proposed 26-acre development.
During its quarterly earnings call on Friday, GLPI, which owns the 35-acre land where the Tropicana Las Vegas once operated, disclosed that it does not plan to fund the complete project.
This Pennsylvania-based real estate investment trust showed interest in engaging with the revenue-generating facets of Bally’s envisioned resort complex.
“We are unlikely to finance the entire project, but there are specific elements, particularly those that can generate profits, in which we may participate,” stated Peter Carlino, GLPI Chairman and CEO.
Bally’s Corp. possesses the gaming license and development rights for that property. The company intends to develop 26 acres into a mixed-use casino and resort that promises 3,000 hotel rooms, a 2,500-seat theater, and 500,000 square feet designated for retail, dining, and entertainment.
GLPI retains the ownership of the land through a 50-year ground lease established in 2022. Bally’s is obligated to pay an initial annual rent of $10.5 million, with specified escalations. That lease was part of Bally’s $148 million cash deal for the operations of Tropicana from GLPI and its partner that same year.
In contrast, GLPI’s involvement with Bally’s Chicago casino-resort is more extensive, where the real estate firm committed up to $2.07 billion, with $940 million dedicated to construction costs. Under this agreement, Bally’s leases both the land and specific real estate interests from GLPI at an annual rent of about $20 million initially.
Carlino indicated that any potential investment in the Las Vegas site would be limited to key areas that promise attractive returns.
“We are quite pleased with what they have proposed and will closely evaluate participation opportunities as they arise,” he added. “Keep an eye on Las Vegas as it is currently positioned very well.”
The Tropicana Las Vegas, among the oldest establishments on the Strip, ceased operations on April 2, 2024, and was taken down on October 9, 2024. The site is also expected to house a $2 billion, 33,000-seat Major League Baseball stadium, which will become the new home for the Oakland Athletics upon their relocation in 2028.
With GLPI managing the land and Bally’s holding the development rights, the project is progressing in stages as both companies identify their investment priorities for the mixed-use casino and entertainment complex.