The past few weeks have been packed with industry news due to the pandemic COVID-19 outbreak. This health-crisis have been devastating the lives as well as affecting the economy. Amidst the chaos caused by this deadly virus, the casino industry has been undergoing severe loss. Another casino news that caught a major attention was last week when Penn National Gaming INC. announced it’s selling of the Tropicana casino.
Frank Sinatra hung out there. ‘The Godfather’ was also filmed in the same venue. And the iconic Las Vegas resort even invented the swim-up blackjack table. But the previous week, Tropicana was sold for $307.5 million about $52.5 million less than it paid for the strip property five years ago. Pennsylvania headquartered casino operator Penn National Gaming will no longer own the real estate but will still run the day-to-day operations of the business.
GLPI brought Tropicana for $337 million in non-cash rent payments. Penn National will have nine figures worth of rent already paid and will not have to come out of pocket until those credits expire. Besides, Penn’s 26,000 workers, including those at Tropicana and its other Vegas property. M Resorts, have been furloughed in the wake of the coronavirus shutdown in Vegas. The company promised to pay employees through the end of March and those receiving medical benefits through the company will get them through the end of June.
CEO Jay Snowden said, “Penn National is a family, and we deeply regret the hardship this will place on you and your loved ones. We are extremely motivated and focused on reopening our properties as soon as it is safe and legal to do so.”
However, The sale of the Tropicana follows a string of Las Vegas Strip casinos that have been sold over the last year, including the Rio Las Vegas, Circus Circus, and the Bellagio. Stay tuned to GutshotMagazine.com for poker news and gaming industries around the world.
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