‘Unlikely’ Bally’s Strip casino project gets fully funded by landlord

The real estate trust holding the land under the former Tropicana hotel-casino said it would not be footing the full bill for an envisioned resort project at the site, an indication that its gaming partner may require additional backing to make the deal work.

Gaming & Leisure Properties Inc., owner of the 35-acre parcel of land at the south end of the Las Vegas Strip where the Trop once stood, told analysts Friday it would be open to investing in certain segments of Bally’s Corp.’s proposed casino complex, but stopped short of committing to broader construction financing.

“It is unlikely that we will finance the entire project, but there are elements of that, profit-making elements, that I think we could participate in,” Peter Carlino, chairman and CEO of GLPI, said Friday morning during a quarterly earnings call.

Rhode Island-based Bally’s Corp. plans to use 26 acres at the site to build a mixed-use venue that will feature 3,000 hotel rooms, a 2,500-seat theater and 500,000 square feet of retail, dining and entertainment space.

Bally’s holds the gaming license and development rights at the site, while GLPI retains ownership of the land under a long-term ground lease.

“We are very pleased with what they have discovered or what they have laid out, and we may or may not participate as opportunities arise,” Carlino said of the Bally’s pitch. “Stay tuned in Las Vegas as well. It is in a very good place at the moment.”

Bally’s did not respond to a request for comment Friday.

Bally’s acquired the hotel‐casino operations of the Tropicana Las Vegas from GLPI and its partner for roughly $148 million in cash after a deal that closed in 2022. Simultaneously, Bally’s entered into a 50‑year ground lease with GLPI for the land beneath the site, agreeing to pay an initial annual rent of $10.5 million, subject to escalations.

Tropicana Las Vegas closed on April 2, 2024, and was imploded on Oct. 9, 2024. The Rat Pack-era resort was shuttered and demolished to make space for a $2 billion, 33,000-fan-capacity Major League Baseball stadium, which will be home to the relocating Athletics in 2028.

Bally’s has previously relied on GLPI for large-scale project financing. Last year, GLPI agreed to provide up to $2.07 billion for Bally’s planned Chicago casino-resort, including $940 million for construction costs, with Bally’s leasing the land and certain real-estate interests back from GLPI for roughly $20 million in initial annual rent.

Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.