Gaming and Leisure Properties Acquires Three Casinos in Nevada, South Dakota for $105 Million

In a significant expansion of its portfolio, real estate investment trust (REIT) Gaming and Leisure Properties, Inc. (GLPI) has announced the acquisition of three premier casino resorts in South Dakota and Nevada, with a combined purchase price of $105 million. The acquisition, which is expected to close by the end of the fiscal quarter, includes properties that are well-positioned in markets with limited gaming supply and strong customer bases.

The Deadwood Mountain Grand in Deadwood, South Dakota, in the winter. (Source: Black Hills Pioneer)

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This strategic move broadens GLPI's geographical footprint and also marks the establishment of a new tenant relationship with Strategic Gaming Management, the operator of the casinos. It includes the Silver Slipper Casino & Hotel in Nevada, as well as the Deadwood Mountain Grand Hotel & Casino and the Tin Lizzie Gaming Resort in South Dakota.

With our acquisition of the Silverado, DMG, and Baldini’s properties, we are pleased to further diversify our property portfolio while expanding our tenant roster through our new relationship with Strategic, a dynamic and growing gaming operator. The addition of Strategic’s properties expands our portfolio to 65 properties across 20 states with 9 tenants and is expected to be immediately accretive to GLPI’s operating results.

Peter CarlinoGLPI Chairman and CEO

These properties collectively offer over 1,000 slot machines, 50 gaming tables and 500 hotel rooms, along with a variety of dining and entertainment options. GLPI's CEO, Peter Carlino, stated that this acquisition aligns with the company's growth strategy of investing in high-quality gaming assets that can generate sustainable rental revenues.

Related: Under-Construction Hard Rock Casino in Illinois Changes Ownership

Strategic Gaming Management, the new tenant, will enter into a triple-net lease agreement with GLPI for these properties. The lease has an initial term of 15 years, with four 5-year renewal options, reflecting a strong long-term commitment from both parties. The annual rent is expected to be approximately $9.4 million, subject to escalation provisions. This partnership is poised to provide stable cash flows and enhance shareholder value for GLPI.

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Smart Move for GLPI

Industry analysts view this acquisition as a positive development for GLPI, noting that the company's proactive approach to portfolio diversification has historically yielded favorable results. The integration of these properties is anticipated to be seamless, given the REIT's extensive experience in managing gaming and leisure assets. Moreover, the new relationship with Strategic Gaming Management is expected to open avenues for further collaborations in the future.

GLPI's expansion comes at a time when the gaming industry is experiencing a resurgence, with increased demand for leisure and entertainment post-pandemic. The acquisition of these casino resorts is a testament to GLPI's confidence in the sector's growth potential and its commitment to capitalizing on emerging market opportunities.

This transaction is subject to customary closing conditions and regulatory approvals. Both GLPI and Strategic Gaming Management have expressed their eagerness to complete the acquisition promptly and begin a fruitful partnership.


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