The deal will see Jack Entertainment sell the real estate assets of the two properties, before renting them back from the real estate investment trust in a triple-net leased fee agreement.
The operator has already invested over $700m in the two properties and will continue to operate and invest in them as part of the deal.
Mark Dunkeson, CEO of Jack Entertainment, said: "Jack Entertainment looks forward to continuing to operate Jack Cleveland Casino and Jack Thistledown Racino.
"The combined efforts of our gaming properties, together with the other Cleveland assets operated by our sister companies, have created a strong connection to the city and this allows us to remain heavily committed to the Cleveland area.
"We will continue to invest significant capital into these properties, which will have a lasting positive impact on the city and Cuyahoga County."
In a similar deal, MGM Resorts International recently sold the real estate of the Bellagio to Blackstone Real Estate Income Trust for $4.25bn, agreeing to rent the property back for an annual sum of $245m.
