LAS VEGAS
Penn National Gaming, Inc. announced that it received approval from the Nevada Gaming Commission (NGC) last week to complete the company’s planned $360 million acquisition of Tropicana Las Vegas.
The NGC’s approval represents the final step in the regulatory process to finance and acquire the property following earlier approvals in several other jurisdictions where the company operates. Penn National was expected to complete the purchase of Tropicana Las Vegas on August 25, 2015.
“The addition of Tropicana Las Vegas to our national portfolio of gaming assets is an exciting and important milestone for Penn National as it fulfills our longstanding strategic objective to acquire the right resort at the right price on the Las Vegas Strip,” said Timothy Wilmott, Chief Executive Officer of Penn National Gaming. “Tropicana Las Vegas will allow us to leverage our database of nearly three million active regional gaming customers while further diversifying our operations.”
Tropicana Las Vegas is situated on a 35-acre land parcel at the corner of Tropicana Boulevard and Las Vegas Boulevard, approximately 2.5 miles from McCarran International Airport at the southern end of the Las Vegas Strip. The property has undergone over $200 million of upgrades over the past four years, including renovations of all its nearly 1,500 guest rooms. Other amenities include a 50,000 square foot casino with over 1,000 gaming positions, a sports book, three full service restaurants, a food court, a 1,200-seat performance theater, the 300 seat Laugh Factory comedy club, over 100,000 square feet of exhibition and meeting space, and a five-acre tropical beach event area and spa.
As previously announced, Penn National has developed a two-phase plan to realize the full value of the transaction, which it expects to implement over the next three to five years. In the first phase, scheduled to occur over the next six-to-nine months, the company will invest approximately $20 million in further facility improvements and integration activities.
These will include upgrading the property’s existing technology infrastructure to allow for the integration of Penn National’s nationwide player loyalty program, Marquee Rewards, at Tropicana Las Vegas, with the goal of launching the program in the second quarter of 2016.
In the second phase, the company plans to evaluate other potential facility enhancements at the property, such as the addition of retail space, food and beverage outlets, casino floor improvements and additional hotel rooms. The scope, budget and timing of any such expansion and improvements will be determined based upon Penn National’s operation of the property and customer demand for additional amenities.
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. At June 30, 2015, the Company operated 26 facilities in 17 jurisdictions, including Florida, Illinois, Indiana, Kansas, Maine, Massachusetts, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario.
