Published: June 28, 2022

Bally's to sell two Rhode Island properties, will still own and operate casinos

(WJAR) — Bally's Corporation announced on Tuesday they have sold the properties of their Lincoln and Tiverton Casinos to Gaming and Leisure Properties for $1 billion.

According to a release, Bally's will immediately lease back the two properties from Gaming and Leisure Properties while continuing to own, control and manage the gaming operations of the facilities

Bally's said the cash flow will assist them with their strategic plans.

If the deal passes regulatory approval, Bally's will pay an incremental rent of $76.3 million over the next 15 years. This will be added to the existing Bally's Master Lease, which covers Bally's Dover Casino Resort, Bally's Evansville Casino & Hotel, Bally's Quad Cities Casino & Hotel, and Bally's Black Hawk Casinos.

"Bally's is excited to enter into this transaction with GLPI, further strengthening our growing relationship," said Bobby Lavan, chief financial officer of Bally's." 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."

According to a release, if Gaming and Leisure Properties does not receive all third-party consents and approvals in a timely manner, they will instead acquire the property assets of the Hard Rock Hotel & Casino Biloxi in Mississippi and Tiverton for a total consideration of $635 million and a combined annual rent of $48.5 million. Gaming and Leisure properties will also have the option of acquiring the Lincoln property before December 31, 2024 if all third-party consents and approvals are received. This would cost Gaming and Leisure Properties $771 million and rent would total $59.8 million.

Bally’s Corporation is also the presenting sponsor of the regional sports networks owned by NBC 10's parent company, Sinclair Broadcast Group.

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