The Atlantic City skyline — Courtesy: Casino Reinvestment Development Authority/Bob Krist
By Joshua Burd
Caesars Entertainment Corp. and VICI Properties Inc. have agreed to sell the Bally’s Atlantic City Hotel & Casino, further reducing Caesars’ footprint in the resort town.
The joint venture announced Friday that Twin River Worldwide Holdings Inc. would purchase Bally’s for about $25 million in cash. VICI will receive some $19 million from the sale, while Caesars will receive about $6 million.
“We look forward to the reopening of Bally’s Atlantic City as soon as appropriate once the public health emergency related to COVID-19 has passed,” Caesars CEO Tony Rodio said. “We appreciate Twin River’s commitment to this property, which has a great future ahead under its stewardship.”
Caesars, at one time the dominant owner in Atlantic City, has trimmed its portfolio in recent years as the casino industry has contracted. The gaming giant in 2014 sold Showboat, the Mardi Gras-themed property, which developer Bart Blatstein now operates as a nongaming hotel.
Following the sale, Caesars will continue to operate Caesars Atlantic City, which will include the Wild Wild West casino area and The Book sports wagering facility, along with Harrah’s Resort Atlantic City. VICI Properties will continue to own the land and real estate associated with Caesars Atlantic City, including the Wild Wild West casino area.
“The sale of Bally’s Atlantic City demonstrates our ongoing commitment to work collaboratively with our tenants to optimize our individual businesses, even during these unprecedented times,” said John Payne, president and chief operating officer of VICI Properties. “This transaction allows us to maintain the existing financial terms of our master lease with Caesars and helps balance our geographic diversification as we work to complete the acquisition of Harrah’s Resort Atlantic City.”
The Bally’s Atlantic City transaction is subject to regulatory approvals and other closing conditions. Bally’s Atlantic City will continue to be part of the Caesars Rewards network until closing.
