Bally’s Rhode Island casino property sold for $1 billion

ballys rhode island sold

Best Casino Sites

Top Rated Casinos

Bally’s is selling two of its casino properties in Rhode Island to Gaming and Leisure Properties for $1 billion.

The two casino properties part of the deal are Bally’s Twin River Lincoln Casino Resort located in Lincoln, and Bally’s Tiverton Casino & Hotel located in Tiverton. As part of the deal Bally’s will lease back the properties from Gaming and Leisure and continue to operate them.

Why was Bally’s Rhode Island casino property sold?

Bally’s currently has an existing master lease agreement with Gaming and Leisure, and it is expected that the two Rhode Island properties will simply be added to the agreement with an incremental lease increase of $76.3 million. The master lease agreement had an initial term of 15 years when originally signed, of which 14 are remaining, followed by four five-year renewal options which are owned by the tenants.

The agreement also has a clause in it if Bally’s is unable to get timely approval for the sale of Bally’s Twin River Lincoln due to recent creditor issues. If timely approval does not occur Gaming and Leisure would instead acquire the real estate assets of the Hard Rock Hotel & Casino Biloxi in Mississippi along with Bally’s Tiverton Casino & Hotel. This alternate deal would be worth $635 million and the combined rent for Biloxi and Tiverton would be $48.5 million.

Should that clause be initiated, and the Biloxi and Tiverton properties sold to Gaming and Leisure, they would also gain the rights to acquire the Lincoln real estate anytime before December 31, 2024 for $771 million and additional rent of $58.8 million.

To help fund the purchase Gaming and Leisure is selling stock. Gaming and Leisure is reportedly selling 6.9 million shares and is also granting underwriters who purchase stock a 30-day window in which they can buy another 1.03 million shares.

If the deal receives regulatory approval Rhode Island will become the 18th state in which Gaming and Leisure owns casino venues. Along with Bally’s, Gaming and Leisure also leases venues to Caesars Entertainment and Penn National Gaming.

Popular News Articles

More Popular Articles