Citizens M&A Advisory served as financial advisor to Bally’s Corporation on its acquisition of Tropicana Evansville in Evansville, IN, from Caesars Entertainment Corporation, as well as the acquisition of Jumer’s Casino & Hotel in Rock Island, IL, from Delaware North Companies Gaming & Entertainment.
Bally’s acquired Tropicana Evansville for $140 million. As part of the transaction, an affiliate of Gaming & Leisure Properties (GLPI) acquired the real estate associated with Tropicana Evansville for $340 million, which it is leasing to Bally’s for $28 million per year, subject to escalation. GLPI also acquired the real estate associated with Bally’s Dover Downs casino for $144 million, which it is leasing back to Bally’s for $12 million per year, also subject to escalation. As a result of this structure, no cash outlay was required by Bally’s at closing.
Tropicana Evansville has 79,000 square feet of enclosed space, including 45,000 square feet of casino gaming, four dining venues, a racetrack and a sportsbook.
Meanwhile, Bally’s acquired Jumer’s Casino & Hotel for $120 million. Bally’s funded the acquisition using available borrowings under its Citizens-led revolving credit facility.
“The Citizens M&A team continues to be an invaluable strategic advisor to us as we comb the U.S. landscape for attractive, accretive and strategic opportunities to expand our gaming footprint and enhance our interactive offerings,” George Papanier, president and CEO of Bally’s Corporation, said. “The Evansville and Jumers properties represent excellent additions to our portfolio and allow Bally’s access into two new states at attractive valuations. We are particularly excited to gain access to the attractive Indiana gaming market, in which we will look to significantly advance our mobile and online sports betting and iGaming initiatives.”
“Bally’s Corporation is a significant relationship to Citizens on multiple levels,” Curt Magleby, managing director of Citizens’ gaming, lodging and commercial real estate team, said. “We value our role as a critical financing partner to the company as they grow their physical and online platforms, as well as our status as trusted strategic and financial advisor to the company in their ongoing M&A initiatives. We look forward to continuing to deliver best-in-class, industry-centric financial advisory expertise in future transactions.”