Bally's working on potential uses for Tropicana Las Vegas' land with GLPI

The Chairman and CEO of Gaming and Leisure Properties, the real estate investment trust that owns the land where the Tropicana Las Vegas Hotel & Casino is located, told analysts on an earnings conference call Friday that his team is working on long-term plans for the casino with executives of Bally’s Corp., which is acquiring the Strip property for $308 million 

The acquisition deal was announced in April, with current owner Penn National Gaming, which is affiliated with Gaming and Leisure Properties, as the Tropicana seller. The transaction is expected to close in early 2022.

On Friday, GLPI CEO Peter Carlino said "there is potential for more assets" at Tropicana's location. “I don’t think we or even Bally’s knows what ‘more’ is right now. Frankly, we’re working cooperatively with them to see how we can maximize whatever occurs there. We are considering the maximization of every inch of that property,” he said, as reported by Las Vegas Review-Journal.

“I wouldn’t assume that the deal we have announced is all that you’re going to see coming out of it. Time will tell. We’re very anxious to build our relationship with Bally’s. They’ve been terrific to work with to date, but I don’t think they’ve refined what they want to do, but we’re helping in that process to figure out how we can get the best use of that site,” Carlino said. “I think (we’ve) used the term ‘Stay tuned,’ (earlier in the call) and I would say stay tuned on that one as well.”

Bally’s has affiliations with Major League Baseball, including broadcast rights for several teams through its partnership with the Sinclair Broadcasting Group. For instance, the Oakland A’s have been considering Las Vegas as a potential relocation destination for its stadium.

The Chairman of Bally’s board of directors, Soo Kim, said in May that he hadn’t spoken with Oakland A’s President Dave Kaval, but that he would welcome his call. “We are very creative and there are 35 acres (at the Tropicana),” Kim said in May. “I actually don’t know how many acres it takes to host a baseball stadium so it’s hard for me to comment on this. But Vegas is an important market on a number of fronts. It’s also fast-growing and dynamic which is what sports teams like.”

On Thursday, Gaming and Leisure Properties reported record results in the second quarter of the year, with net income of $138.2 million, 59 cents a share, on revenue of $317.8 million. It was an increase from net income of $112.3 million, on revenue of $262 million.