Tropicana Casino to Be Razed to Make Room for MLB Stadium

Article by : Erik Gibbs Oct 30, 2023

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When Bally’s Corp. purchased the Tropicana, the company was vague about its plans for the property. During Bally’s second-quarter earnings call, the former CEO, Lee Fenton, addressed Bally’s intentions for the property.

Fenton stated that while they have expressed their intention to develop it in the future, they will maintain the property in its current state for at least the next 12 months, allowing for time to formulate a plan and establish partnerships.

It should be noted that the property will be rebranded as Bally’s, the same name previously associated with the Caesars Entertainment resort casino, now known as the Horseshoe.

Ultimately, any initial plans Bally’s had were set aside when the company and the landowner of the Tropicana site, Gaming and Leisure Properties Inc. (GLPI), reached an agreement to allocate nine acres of land, including the Tropicana’s location, to MLB’s Oakland A’s for the construction of a new stadium.

This decision signals the approaching end of the second-oldest casino on the Strip, second only to Caesars Flamingo. The timeline for the closure of the Tropicana has been somewhat ambiguous, as it appears that Bally’s is looking to maximize its earnings from the resort casino.

However, a recent report provides clarity on when the eventual demolition or implosion is expected to occur.

The agreement between Bally’s and GLPI to accommodate the Oakland Athletics in Las Vegas was just one step in bringing the Major League Baseball team to the city.

The league’s approval process is still ongoing, although it’s typically considered a formality. Additionally, Nevada had to pass a funding package for infrastructure, which was eventually approved, though not guaranteed.

Now, Mortenson-McCarthy, the construction manager for the A’s ballpark, has outlined a potential timeline with the Las Vegas Stadium Authority.

Construction is scheduled to commence in April 2025, with completion expected by January 2028. This means that Tropicana enthusiasts likely have over a year to bid farewell to the resort.

Gaming and Leisure Properties initially announced a commitment of $175 million for a baseball stadium at the Tropicana site on the Las Vegas Strip.

However, after meetings with Gaming and Leisure executives at the recent Global Gaming Expo in Las Vegas, analyst Mitch Germain of JMP Securities suggests that this figure might be increased if necessary.

Germain’s discussions led him to believe that the Pennsylvania-based gaming real estate investment trust is optimistic about the Las Vegas ballpark project and could consider a larger investment.

Currently, GLPI holds the property assets of 59 gaming venues across 18 states. While Gaming and Leisure Properties typically favors regional casino real estate, it currently owns the property assets related to the Tropicana on the Las Vegas Strip.

This ownership could prove advantageous if the Oakland Athletics decide to relocate to Las Vegas, as has been widely speculated.

If the plan indeed involves demolishing the Tropicana, an iconic Strip casino, to make room for a baseball stadium, Bally’s would need to be compensated in some way, given that Tropicana is its sole Las Vegas venue.