Bally’s, Oakland A’s Announce Agreement for Tropicana Stadium Site

Posted on: May 15, 2023, 12:00h. 

Last updated on: May 15, 2023, 05:23h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Bally’s and the Oakland Athletics announced Monday that they’ve reached an agreement: the Major League Baseball (MLB) club will build a stadium on nine acres near the Tropicana Las Vegas Hotel and Casino.

Tropicana stadium
Tropicana Las Vegas. Bally’s and the Oakland A’s have an agreement to turn the property into an MLB stadium site. (Image: Getty Images)

The pact was reached in conjunction with Gaming and Leisure Properties, Inc. (GLPI), which owns Tropicana’s property assets.

Regional casino operator Bally’s paid $148 million last September to acquire Tropicana’s building and the operating license from the real estate investment trust (REIT). Should the A’s remain committed to that site, it could mean the clock is ticking on Tropicana, a once iconic casino hotel that opened in 1957 and was previously known as the “Tiffany of the Strip.”

Bally’s intends to continue the operations of the Tropicana Las Vegas for the foreseeable future while evaluating all available options for a broader redevelopment of the remainder of the site that will be adjacent to the new ballpark,” according to a statement.

Gaming and Leisure Properties agreed to fund up to $175 million worth of property improvements in exchange for a rent increase.

How Binding is Bally’s, A’s Agreement?

The pact between Bally’s and the A’s is called “binding” in the statement. But Las Vegas locals are right to be skeptical of such language.

The MLB team previously had a binding agreement with Red Rock Resorts pertaining to approximately  40 acres at the intersection of I-15 and the Tropicana. It’s believed that the accord fell through because the amount of public financing needed to build a stadium on that site is $500 million, compared with $395 million for the same project on Tropicana’s land.

The scrapped agreement with Red Rock isn’t referenced in the press release. Assuming the agreement with Bally’s and GLPI remains in place, the first MLB stadium in Las Vegas will be situated at Las Vegas Boulevard and Tropicana Avenue and accommodate about 30K fans.

The “agreement is subject to passing legislation for public financing and related agreements, and approval of relocation by Major League Baseball. As part of the agreement, Bally’s retains the ability to assign the rights to all aspects of this development and has received material interest from development partners,” according to the statement.

Tropicana Shelf Life

It appears all but certain that if the A’s remain committed to the Tropicana site, the casino hotel’s days are numbered. In the statement, Bally’s President George Papanier used the phrase “ballpark built in its place,” implying the gaming venue will be demolished to make way for the stadium.

A time frame for that happening wasn’t revealed. The A’s lease in Oakland expires in 2024, and it’s expected the club will play two seasons at a minor league stadium in Summerlin, Nevada, before moving to an MLB-ready venue in 2027.

Tropicana is the only Strip venue operated by Bally’s and is the only Las Vegas gaming real estate owned by GLPI.