Bally’s chairman Soonhyung Kim said that once his company completes its takeover of the Tropicana Las Vegas, it will start the redevelopment of the property on the south end of the Las Vegas Strip.
The redevelopment could include razing the entire resort and building a new one from scratch, using their vision. It will also likely be renamed to Bally’s.
Bally’s Purchases Tropicana for $308 Million
Bally’s Corporation announced last April that it was acquiring the Tropicana Las Vegas from Gaming and Leisure Properties, a publicly traded gaming-focused real estate investment trust, for $308 million, saying that the sale was expected to be completed sometime in 2022.
In April 2020, Caesars Entertainment agreed to sell Bally’s Atlantic City to the casino operator that was then known as Twin River Worldwide Holdings. Six months later, Twin River announced that it had purchased the Bally’s Brand from Caesars.
As part of the deal, Twin River agreed to give Caesars a “perpetual license” to use the name for its existing Bally’s Hotel and Casino in Las Vegas. Shortly after that, Twin River changed its name to Bally’s Corporation.
Bally’s Could Go Private
Kim’s announcement comes in the wake of an offer by Standard General to purchase the remaining shares of Bally’s that it doesn’t own. Currently, Standard is the biggest shareholder with more than 20% ownership of the gambling company. Kim, is the managing partner of Standard General.
The offer stood at a massive 30% premium over Bally’s closing price last Monday. The
market shares shot up the following day after the news, closing up 22.5% on Tuesday. If the proposal materializes, Bally’s could go private.
In an interview with the Las Vegas Review Journal, Kim said that Standard General’s offer will have no bearing on Bally’s purchase of the Tropicana Las Vegas. Regardless of what happens to Standard General’s proposal, Bally’s has big plans in the works for the Tropicana property.