Published on: October 25, 2024, 06:52h.
Last updated on: October 25, 2024, 06:52h.
Gaming and Leisure Properties (NASDAQ: GLPI) has mentioned that they are waiting for updates from Bally’s (NYSE: BALY) regarding financing requirements for a proposed casino hotel at the former Tropicana site on the Las Vegas Strip.
During a conference call following the release of the REIT’s third-quarter earnings, executives mentioned that GLPI is the landlord for Bally’s at the Tropicana site where the future gaming venue will be located.
COO Brandon Moore stated that Bally’s is still in the process of refining the integrated resort design, and GLPI is waiting for updates to determine additional financing needs for the construction.
He emphasized that Las Vegas is a key focus for the company, even though they currently do not own property associated with an operational gaming venue in the city.
Minimal Exposure for GLPI in Stadium
Moore highlighted that the stadium construction is primarily financed by the Oakland Athletics (A’s), with the Las Vegas Stadium Authority owning the ballpark land, reducing GLPI’s overall exposure to the project.
Recent reports suggest that A’s owner John Fisher is considering selling a stake in the team, which could help address financing needs for the Las Vegas stadium.
Moore reiterated that their main focus is preserving the remaining parcel of land and that the A’s stadium will occupy nine acres at the former Tropicana site, allowing room for Bally’s to construct a new casino hotel with the right financing.
GLPI Announces Tribal Deal
In addition to Las Vegas, GLPI revealed a sale-leaseback agreement for a California tribal casino operated by the Ione Band of Miwok, marking the first such deal between a tribe and a REIT. This opens up possibilities for similar agreements with tribal gaming properties across the US in the future.
Moore mentioned that there is significant potential in tribal gaming real estate, and they are exploring opportunities to connect with tribes seeking to monetize their casino holdings.
He emphasized the importance of identifying tribes that could benefit from long-term funding options through sale-leaseback structures, highlighting the potential growth in this market.