Bally’s Acquires Bronx Casino Land for $156.6 Million

• Bally’s buys 16 acres on which a casino hotel will be built
• The land is part of acreage currently occupied by a golf course
• Company plans to spend $4 billion on Bronx casino project

Bally’s reportedly now has control of 16 acres of Bronx, NY parkland essential to its plans to build a casino hotel in the borough following a $156.6 million transaction.

The Rhode Island-based regional casino operator has yet to confirm the deal, but media reports indicate the gaming company is now in control of the parkland located at 450 Hutchinson Parkway. That property is part of the 300 acres on which Bally’s Golf Links at Ferry Point sits.

Bally’s paid the Trump Organization — the president’s business empire — $60 million to acquire the lease on Trump Golf Links at Ferry Point in the Bronx. Along with alterations to the golf course’s parking lot and a portion of its practice area, the 16 acres acquired by Bally’s will be the site of the operator’s $4 billion integrated resort.

Bally’s landed one of three New York City-area gaming licenses in December. Its initial license term with the state is 15 years.

Ownership of Bronx Casino Land Is Important for Bally’s

Bally’s direct ownership of the land on which the Bronx casino will reside is vital for various reasons, including making it easier to start the expensive project on time.

As for how Bally’s will finance the Bronx casino, Gaming and Leisure Properties (NASDAQ: GLPI) — the casino operator’s primary landlord — said it’d be interested in a piece of the New York action, but it expects there will be multiple contenders to extend capital to Bally’s. It’s possible it will offer more favorable terms than the gaming real estate investment trust (REIT).

Busy Week for Bally’s

In terms of acquisitions, it’s been a busy week for Bally’s — a company with a well-documented history of deal-making. News of the New York land deal emerged just two days after Bally’s announced it agreed to buy the Sam’s Town Hotel & Casino in Shreveport, La. from Boyd Gaming (NYSE: BYD).

When that transaction wraps up, Bally’s will run four casinos in Louisiana. It remains to be seen if the venerable Sam’s Town name will be retained because Bally’s already runs an eponymous venue in Shreveport.