Gaming & Leisure Providing $225 Million in Financing for Caesars California Tribal Casino
Posted on: September 2, 2025, 09:10h.
Last updated on: September 2, 2025, 12:27h.
- Gaming & Leisure providing $225 million for Caesars Republic Sonoma County
- Blended interest rate is 12.79% at a cap rate of 9.75%
Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) announced Tuesday that it’s reached an agreement with Caesars Entertainment (NASDAQ: CZR) and the Dry Creek Rancheria Band of Pomo Indians to extend $225 million in financing for Caesars Republic Sonoma County.
That project is located on the site of what is now the River Rock Casino in Sonoma County, Calif. Last month, Caesars and the Dry Creek Rancheria commenced construction on a new tribal casino hotel in Healdsburg, Calif., that when completed in summer 2027, will bear the Caesars Republic name. Located in California wine country, Caesars Republic Sonoma County will have more than 100 rooms, four restaurants, 1,000 slot machines, and 28 table games, among other amenities.
“GLPI will initially act as a lender to the project, with a delayed draw term loan of $180 million, priced at a fixed rate of 12.50%, and a term loan B of $45 million, with a current yield to maturity of 13.95%,” according to a statement issued by the real estate investment trust (REIT).
The blended interest rate on the financing extended by Pennsylvania-based Gaming & Leisure is 12.79% at a cap rate of 9.75%. Dry Creek Rancheria and the REIT have a 45-year lease agreement at a total price of “no less than $112.5 million.”
Gaming & Leisure Extending Tribal Casino Footprint
The deal with Caesars and Dry Creek Rancheria expands Gaming & Leisure’s presence in the tribal casino real estate space.
Last October, the REIT provided the Ione Band of Miwok Indians with a $110 million delayed draw term loan facility for construction on a new tribal casino near Sacramento, Calif. That transaction was the first involving external financing for an Indian Country gaming venue.
GLPI remains active in identifying additional opportunities in tribal gaming where partnerships can benefit from our unique funding structures, similar to the value our leading regional gaming operator tenants derive from our relationships,” said the REIT when it delivered second-quarter results in June.
The landlord’s commercial gaming tenants include Bally’s, Boyd Gaming, Caesars, and Penn Entertainment. The REIT owns the property assets of 68 casinos across 20 states.
Caesars Expanding Tribal Casino Reach, Too
With the Dry Creek Rancheria partnership, Caesars is also expanding its tribal casino management footprint. Currently, the gaming company manages several tribal casinos under its Harrah’s brand. Two of those venues are located in California, with another pair in North Carolina and a single property in Arizona.
Under the terms of commercial/tribal agreements, the tribes pay yearly management fees to commercial counterparts to run their casinos and, in some cases, licensing fees to use recognizable brands such as Caesars Republic and Harrah’s.
Speaking of Caesars Republic, it’s the freshest label in the parent company’s portfolio. There’s a nongaming venue in Scottsdale, Ariz. bearing that name, and the operator is spending $160 million to transition Harveys Lake Tahoe into Caesars Republic Lake Tahoe.
Last Comment ( 1 )
Clearly a wiser financial decision than helping to finance Bally's Chicago. Disagree? Look at the slope of the BALY stock chart. I already know you will then wholeheartedly agree. Take a look if you can find it.