Bally’s agrees to $4.6B buyout ahead of Tropicana implosion
The impending implosion of the Tropicana casino-hotel is still a few months away, but one of the companies involved just made an explosive move.
Rhode Island-based Bally’s Corp. announced Thursday it has accepted a buyout offer from Standard General LP, the company’s largest shareholder, for a reported $4.6 billion. New York-based Standard General is a hedge fund managed by Bally’s Chairman Soo Kim.
The merger agreement combines Bally’s Corp. with regional gaming operator The Queen Casino & Entertainment Inc., which was already part of Standard General’s portfolio. Queen owns and operates four casinos in Illinois, Iowa and Louisiana. The merger increases the combined company’s gaming portfolio to 19 properties across 11 states.
Bally’s CEO Robeson Reeves said the company is “well positioned to continue to execute on our initiatives to drive growth.”
“The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio,” Reeves said in a news release. “We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.”
Bally’s was the casino operator of the now-shuttered Tropicana Las Vegas, which closed on April 2. The immediate impact on the future of the former Tropicana site remains unclear following Thursday’s announcement, although a demolition of the remaining structures is scheduled to take place in early October, according to Clark County records.
Bally’s and land-owner Gaming & Leisure Properties Inc. have stated their intention to construct a new casino-hotel somewhere on the 35-acre site at the corner of Las Vegas Boulevard and Tropicana Avenue. The two parties have also agreed to commit up to 9 acres for the construction of a new baseball stadium for Major League Baseball’s Oakland Athletics.
Last week A’s executive Sandy Dean revealed that the team’s ballpark is planned to be built just northeast of the center of the site, with the northwest-facing portion of the ballpark featuring a massive steel-curtain glass wall with views of the Strip.
The A’s are in the midst of negotiating and finalizing a trio of agreements with the Las Vegas Stadium Authority that would make up to $380 million in public funding available to the team to go toward financing a portion of the stadium’s costs.
Plans call for construction on the A’s stadium to begin in April and for it to be completed in time for the 2028 MLB season.
Bally’s CEO Robeson Reeves said the company is “well positioned to continue to execute on our initiatives to drive growth.”
“The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio,” Reeves said in a news release. “We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.”
In a press release, Bally’s said the Standard General deal offers stockholders $18.25 per share, which represents a 71 percent premium over the company’s 30-day average price per share. Alternatively, shareholders can choose to keep their investment in the company, which will remain publicly traded.
In a statement, Kim said Thursday’s deal provided Bally’s stockholders with a “significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline.”
Pending federal regulatory approval from the U.S. Securities and Exchange Commission, Bally’s says it expects to close on the deal in the first half of 2025.
Bally’s stock price increased nearly 25 percent on Thursday, ending at $16.91.
Contact David Danzis at ddanzis@reviewjournal.com or follow him on X at AC_Danzis. Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on X.