Caesars Completes Sale of Tropicana Evansville to GLPI and Bally’s Corp

Caesars Entertainment has finally closed the sale of its Tropicana Evansville property in Indiana to Gaming Leisure Properties, Inc (GLPI) and Bally’s Corporation. The transaction has cost GLPI, and Bally’s a combined sum of $480 million in cash, subject to standard working capital adjustments. With the sale, Caesars also surrendered its rights to the sports betting and iGaming skins associated with the Evansville property.

This acquisition arrangement was penned in October 2020 to abide by the Indiana Gaming Commission’s (IGC) directive for Caesars to sell three of its five properties in The Hoosier State. The divestment was a condition the IGC gave for approving the multi-billion-dollar merger-acquisition between Eldorado Resorts Inc and Caesars Entertainment Inc. After completing the business combination in July 2020, Eldorado Resorts Inc changed its company name to Caesars Entertainment.

Indiana’s gaming industry regulator had raised concerns over the monopolistic advantage that the merged brand would gain in Indiana’s gaming market. Without divestment, the new Caesars Entertainment brand would have ended up controlling about 60% of the gaming revenue with a total of five gaming properties (one from Eldorado and four from Caesars Ent Inc).  

After completion of the sale last week, on June 4th, Tom Reeg, the Caesars Entertainment Inc CEO, expressed his gratitude to the staffers of the divested property in a statement saying:

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“I want to thank the Team Members of Evansville for all of their hard work and wish them continued success under Bally’s leadership.”

The Tropicana Evansville property was originally launched as a riverboat casino in 1995, bearing the name Casino Aztar before it formally moved aground in 2017. The entire venue now sits on a 20-acre parcel in Vanderburgh County, along the Ohio River, featuring over 46,000 square feet of casino gaming space with 1,145 gaming machines, 41 table games, and a sportsbook.  Alongside the gaming operations, the property also has 338 hotel rooms and meeting space spanning over 47,000 square feet.

The Second-Last Chapter of Caesars Gaming Property Offload in Indiana

Tropicana Evansville’s acquisition marks the second-last chapter of Caesars’ divestment plan in the Hoosier State. Less than three months after announcing the sale of the Evansville property last year, Caesars reached an agreement with the Eastern Band of Cherokee Indians, who acquired its Southern Indiana casino for $250 million.

Before the end of this year, Caesars plans to shed the third property in Indiana, the Horseshoe Hammond Casino in Hammond city, to fully comply with IGC’s competition-friendly directive.

Bally’s portion of the Tropicana Evansville acquisition was $140 million, which was spent buying the property’s casino operators. The remaining $340 million of the transaction came from an affiliate of GLPI who purchased the real estate associated with the Evansville casino. The real estate owner will now lease the venue to Bally’s for an annual fee of $28 million.

After the acquisition from Caesars was finalized last week, the chairperson and CEO of GLPI, Peter Carlino, shared a few words to voice his delight as follows:

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“We are pleased to add these high-quality regional assets to our portfolio, expand our roster of operators, and gain geographic exposure to a new state. Bally’s is one of the nation’s most dynamic regional gaming operators, and we look forward to further supporting the execution of their growth plans. In particular, we look forward to adding their Mardi Gras and Golden casinos in Blackhawk, Colorado, and their Jumer’s Casino and Hotel in Rock Island, Illinois, to our existing master lease as we further expand our partnership.”

This deal is a massive win for Bally’s and a significant step ahead in its USA expansion strategy as it will now have a presence in 11 USA states. Including Indiana’s Tropicana Evansville, The company has a total of 15 casinos under its umbrella, cutting across Rhode Island, New Jersey, Nevada, Missouri, Mississippi, and half a dozen more states. In addition, Bally’s is also constructing a new casino in State College, Pennsylvania.

Following the completion of Tropicana Evansville’s acquisition, George Papanier, the president and Chief Executive Officer of Bally’s Corp, said:

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“The Tropicana Evansville acquisition closing marks another major accomplishment in what has already been a truly remarkable year for Bally’s. As we continue to implement our growth and diversification strategy with precision, we are excited to welcome the Tropicana Evansville into the Bally’s family and look forward to the opportunity to provide our first-in-class land-based and interactive entertainment offerings to the Indiana gaming market.”