Casino developer Bally's Corp. has entered into an agreement with GLP Capital to sell the real property assets of two properties in Rhode Island for $1 billion — Bally's Twin River Lincoln Casino Resort and Bally's Tiverton Casino & Hotel.
Officially known as a binding term sheet, the transaction is subject to customary regulatory approvals. Pursuant to the terms of the transaction, Bally's will immediately lease back both properties and continue to own, control, and manage all the gaming operations of the facilities, Bally's said in a news release Tuesday.
“The transaction will provide the company with significant, long-term liquidity, ensuring that Bally's is best positioned to continue executing its capital and strategic plan, as well as to capitalize on future opportunities presented in the market,” Bally's Chief Financial Officer Bobby Lavan said in the release.
Both properties are expected to be added to the existing Bally's Master Lease between Gaming and Leisure Properties Inc. and Bally's, with incremental rent of $76.3 million. The Master Lease has an initial term of 15 years (with 14 years remaining) followed by four five-year renewals at the tenant's option.
In addition, Bally's will pay a $9 million transaction fee at closing.
Bally’s is a major player among real money online casino operators in the United States and it currently owns and manages 14 retail casinos across 10 states, a horse racetrack in Colorado and has access to OSB licenses in 18 states.
Upon closing the previously announced Tropicana Las Vegas transaction, as well as completing the construction of a casino near the Nittany Mall in State College, Pennsylvania, Bally's will own and manage 16 casinos across 11 states.
Bally’s rebranded both Rhode Island casinos as Bally’s Twin River Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel after Twin River Worldwide Holdings, which is based in Rhode Island, purchased the Bally’s name from Caesars Entertainment in October 2020.
Twin Rivers changed its name to Bally’s Corp., effective Nov. 9, 2020, and began trading on the New York Stock Exchange under its new ticker symbol — BALY.
In Rhode Island, the company officially broke ground on an expansion of the Bally’s Twin River Casino last fall.
In May, the City of Chicago selected Bally's Chicago — a $1.7 billion destination casino, entertainment and hotel project — as the preferred bidder in the city's request for proposal process to construct a casino resort in downtown Chicago.
The project is expected to generate more than $800 million in stabilized gaming revenue on an annual basis — a substantial portion of which will support the city's obligations toward its fire and police union pensions.
The facility will include 3,400 slots, 170 table games, 10 food and beverage venues, a 500-room hotel, a 3,000 seat/65,000 square foot entertainment center, a 20,000 square foot exhibition and an outdoor music venue.
Selection by the Chicago City Council came one year after a resort casino evaluation panel in Richmond, Virginia., dropped Bally's from consideration for a project in the state's capital.
The Richmond casino is now under review for a second referendum vote this year after the first vote rejected the project in November 2021.
An amendment included in Virginia's 2022 state budget would provide Petersburg a possible chance to roll the dice on a casino, instead of Richmond.
Under the amendment, funds would be dedicated towards a Joint Legislative Audit and Review Commission (JLARC) study to take a closer look at the revenue a casino would generate in Petersburg. Delaying Richmond's second referendum vote, as stated in the state budget, would give Petersburg time to perform the JLARC study.
“We’ve already had preliminary discussions with six or seven casino operators,” Virginia Sen. Joe Morrissey said.
“Next year, when we have the JLARC study done, we will then introduce legislation that Petersburg gets the casino.”