Gaming and Leisure Properties (NASDAQ: GLPI) announced that it is awaiting updates from Bally’s (NYSE: BALY) regarding potential financing for a planned casino hotel at the site formerly occupied by the Tropicana on the Las Vegas Strip. The revelation came during a conference call following the release of GLPI’s third-quarter earnings. The real estate investment trust (REIT) holds ownership of the land where a new Major League Baseball Stadium (MLB) will be built, which includes the former Tropicana site, making GLPI Bally’s landlord for the future gaming venue.
Bally’s is collaborating with design professionals to refine the concept of the integrated resort, which will unfold in multiple phases. This ongoing process will determine the extent of additional financial support GLPI might be asked to provide or is willing to offer for the resort’s construction. COO Brandon Moore emphasized that Las Vegas remains a major focus for the company, despite not currently owning the property tied to an operational gaming venue in the city.
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Moore noted that the construction of the stadium is primarily funded by the Oakland Athletics (A’s), who are relocating to Las Vegas. The stadium’s land will be owned by the Las Vegas Stadium Authority, limiting GLPI’s exposure to the project. Reports surfaced earlier this week indicating that A’s owner John Fisher seeks to sell up to 25% of the team for $500 million, a move that could significantly address the team’s financing needs for the Las Vegas stadium.
Moore assured investors that GLPI’s primary focus remains on preserving the value of the remaining parcel at the Tropicana site. The A’s stadium will occupy nine acres of the former Tropicana property, leaving Bally’s with ample space to construct a new casino hotel, contingent on securing the necessary financing.
In other news, GLPI has entered into a landmark sale-leaseback agreement for a California tribal casino operated by the Ione Band of Miwok. This marks the first arrangement of its kind between a tribe and a REIT. Given the significant real estate holdings of tribes involved in gaming across the US, similar opportunities could emerge in the future. Moore highlighted the substantial potential market in tribal gaming real estate and the ongoing efforts to connect with tribes interested in monetizing their casino properties.
Moore expressed optimism about the potential for more such deals, suggesting that while GLPI is at the upper end of market potential, the true extent of opportunities in tribal gaming real estate remains to be seen.
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