Reno’s Eldorado Resorts part of $1.85 billion deal for Tropicana assets

RENO, Nev. — Reno-based Eldorado Resorts struck a major deal this week to help purchase a majority of Tropicana Entertainment’s gambling and hotel operations.

The approximately $1.85 billion deal announced April 16 includes the MontBleu Casino Resort & Spa in Stateline, on Lake Tahoe’s South Shore, and the Tropicana Laughlin Hotel and Casino in Southern Nevada, as well as casinos in Indiana, Louisiana, Mississippi, Missouri and the flagship Tropicana Casino and Resort in Atlantic City, New Jersey.

“The acquisition of seven Tropicana Entertainment properties will allow Eldorado to enter two new gaming jurisdictions and deliver additional financial and geographic diversity to our operating base,” company chairman and CEO Gary Carano said in a statement. “Ultimately, we believe that the addition of the highly complementary Tropicana Entertainment assets to the Eldorado Resorts family of properties will result in attractive near- and long-term growth for Eldorado and another opportunity to create new value for shareholders.”

The deal reportedly calls for Pennsylvania-based Gaming and Leisure Properties to take possession of nearly all of Tropicana’s real estate for $1.21 billion, while Eldorado funds the remaining $640 million. Eldorado will then lease the real estate from Gaming and Leisure Properties through a master lease with a 15-year initial term, and options for 5-year renewal periods. Initial annual rent is $110 million.

According to Eldorado Resorts, the purchase includes approximately 7,900 slot machines, 265 table games and 5,400 hotel rooms along with other dining, retail and entertainment amenities. The deal will expand Eldorado’s portfolio to about 26,800 slot machines, 800-plus table games and more than 12,500 hotel rooms.

Eldorado also announced on April 16 a $327.5 million deal to purchase the Grand Victoria Casino in Elgin, Ill.