Bally's Atlantic City sold for $25M, casino plans to reopen after coronavirus
Friday 24th April 2020
Caesars Entertainment Corporation and VICI Properties Inc. on Friday announced they have reached an agreement to sell the Bally's Atlantic City Hotel & Casino to Twin River Worldwide Holdings Inc. for about $25 million in cash.
"We look forward to the reopening of Bally's Atlantic City as soon as appropriate once the public health emergency related to COVID-19 has passed," Caesars CEO Tony Rodio said in a statement.
"We appreciate Twin River's commitment to this property, which has a great future ahead under its stewardship," Rodio said.
VICI will receive about $19 million from the sale, while Caesars will receive about $6 million.
The sale is not a result of financial straits felt by many industries due to the coronavirus. About 16,000 Atlantic City resort and casino workers have been temporarily laid off since March.
"The sale of Bally's Atlantic City is a strategic initiative that Caesars Entertainment had been pursuing long before the onset of the COVID-19 pandemic," said Noel Stevenson, a spokesperson for Caesars.
The annual base rent payments under the Non-CPLV Master Lease between Caesars and VICI remain unchanged, the announcement stated.
Caesars will continue after the sale to operate Caesars Atlantic City, which will include the Wild Wild West casino area and The Book sports wagering facility, and Harrah's Resort Atlantic City.
VICI Properties will continue to own the land and real estate associated with Caesars Atlantic City, including the Wild Wild West casino area.
The Bally's Atlantic City transaction is subject to regulatory approvals and other closing conditions.