Caesars Entertainment has agreed to sell its Tropicana Evansville property to Gaming Leisure Properties and Twin River Worldwide Holdings for $480m.
The Indiana-based casino and hotel’s cash purchase by Gaming Leisure Properties and Twin River is subject to working capital adjustment and is expected to be completed midway through 2021.
As part of the deal, real estate investment trust Gaming and Leisure Properties, will purchase Tropicana’s real estate for $340m to lease it back to Twin River for $28m a year in rent, while the operator will acquire the casino’s operations from Caesars for $140m.
The transaction will also see Twin River acquire unencumbered rights to sports betting and online gaming skins associated with the casino’s operations, allowing it to access the Indiana market.
In accordance to the agreement, Caesars agreed to add the real estate of its Isle Casino Hotel Waterloo and Isle Casino Hotel Bettendorf properties to the Gaming and Leisure Properties Master Lease, giving the operator full ownership of Tropicana, allowing it to sell the casino in whole.
Caesars Entertainment CEO Tom Reeg, said: "I want to thank all of our Evansville team members for their hard work and dedication, especially during the COVID-19 pandemic, and we wish them the best under Twin River's ownership.”
Twin River president and CEO, George Papanier, added: "This transaction is consistent with our core strategy of acquiring strategic gaming assets at attractive valuations and, importantly, represents the company's entry into a 10th state.”