The United States of America continues to grapple with the COVID-19 outbreak and so far, the pandemic has infected over 1, 88,592, and killed 4056 people. Coronavirus has unleashed its impact on many business organizations. Now Penn National Gaming forced to sell one of its two Las Vegas-based casino properties. The decision has been taken to alleviate the economic suffering of the coronavirus caused by casino closure in Nevada.
Penn National Gaming sold its Tropicana Las Vegas casino, its only Strip casino to Gaming & Leisure Properties. Gaming & Leisure Properties is a real estate investment trust. Now Penn National Gaming will not be in charge of the ownership but will continue to run the everyday operations of the business.
It appears that the latest move came right from MGM’s playbook. Earlier this year and in 2019, MGM Resorts sold the real estate of its properties and then leased it back from the group it sold the property.
Recently, MGM sold a large stake of the MGM Grand and Mandalay Bay to its own properties, namely REIT and MGM Growth Properties. MGM sold 49.9 percent of the real estate to the renowned Blackstone Group. Blackstone has also acquired Bellagio from MGM Resorts earlier in the year 2019 in October.
GLPI has purchased Tropicana for a whopping $337.5 million in non-cash payments. Interestingly, Penn National has already paid nine figures worth of rent and won’t be required to pay any more as long as those credits do not expire.
The deal consists of a ground lease for systematic casino growth in Pennsylvania along with the alternative for Penn National to obtain a GLPI-owned casino based in Maryland.
The sale also revealed that Penn National would send approximately 26000 workers on leave.
Companies in the USA are hoping that the current scenario ends soon and brings their business back on track.