
Gaming and Leisure Properties, better known by its NASDAQ moniker GLPI, had earlier declared a hefty sum of $175 million in financial backing towards the construction of a new baseball stadium in the location currently occupied by Tropicana on the Las Vegas Strip. Yet, following recent discussions with senior executives, an industry expert predicts that the financial commitment might surge even further if necessary.
Post the recent Global Gaming Expo held in Las Vegas, Mitch Germain, a seasoned analyst from JMP Securities, shared insights that pointed towards the Pennsylvania-based gaming real estate investment trust’s increased enthusiasm towards the Las Vegas-based baseball stadium project. His interpretation of the executive sentiment indicated a readiness to expand their financial commitment beyond the initially proposed $175 million.
GLPI currently holds property assets for 59 gaming venues spread across 18 different states. Despite their known preference for regional casino real estate, the ownership of assets at Tropicana on the Las Vegas Strip aligns well with their potential benefit from the speculated relocation of the Oakland Athletics to Las Vegas. Bally’s, the current operator of Tropicana, and GLPI have collectively agreed to dedicate up to $175 million for property enhancements in return for escalated rent.
If the intention to replace the venerable Tropicana, one of the older Strip casinos, with a spanking new baseball stadium takes off, it is likely to necessitate some form of compensation for Bally’s, as Tropicana happens to be their only Las Vegas establishment. In a transaction carried out in April 2021 and priced at $308 million, Bally’s took possession of Tropicana’s non-real estate assets from GLPI. As part of this agreement, Bally’s sold the property assets of venues in Colorado and Illinois to GLPI and agreed to lease back those properties, signing up for a 50-year lease for Tropicana starting at an annual rent of $10.5 million.
Further developments suggest that there might be potential for Bally’s to carry out site redevelopment at Tropicana after the new stadium is in place.
Shortly, more definitive information pertaining to the Las Vegas stadium project and the future of the Tropicana could surface. The A’s are due to meet with the Las Vegas Stadium Authority for the first time this Wednesday. With the GLPI’s third-quarter results set to be announced this Friday, speculations revolving around the stadium project and the Tropicana’s future are likely to be answered.
Scuttlebutt regarding the inevitable demolition of the casino hotel isn’t yet officially confirmed; however, Bally’s management has been hinting at considerable alterations at Tropicana with a possible demolition and rebuilding in pipeline.
As we reach the conclusion of these unfolding events around coveted Las Vegas real estate, the broader narrative reflects emerging shifts and transformations in the world of casinos and gaming – both offline and online. The dynamics of the industry are changing, and the sector’s potential is also mushrooming beyond physical venues. If you’re intrigued by how online casinos have begun to take center stage, you might be interested in our compilation of the top online casinos available this month. Much like in the offline world, the online casino industry is bristling with exciting news, updates, and opportunities too. Stay tuned to our West Island Blog for more interesting insights and information on this riveting game of chance!