Posting date: May 26, 20,23, 02h45.

Last updated: May 26, 2023 at 02:45h
They didn’t. Wild Wild West Gambling Hall & Hotel, Las Vegas. (Image:

Las Vegas Sun

Las Vegas Sun

)

“Binding” turned into “scrapped” when earlier this month, the ball club, Bally’s (NYSE: BALY) and Gaming and Leisure Properties (NASDAQ: GLPI) reached an accord — also described as binding — under which the Tropicana Las Vegas Hotel and Casino will eventually be demolished to make way for a new ballpark.

That means the 96 acres owned by Red Rock near Allegiant Stadium will remain unoccupied for the time being, but following recent meetings with management, Stifel analyst Steven Wieczynski says there is upside for the gaming company following the loss of the MLB stadium deal.Management indicated the land’s value was not well understood prior to the MLB franchise’s bid, and they have recently seen increased interest from buyers now that it is back on the auction block that has given them increased confidence RRR will be able to effectively monetize the acreage differently,” wrote the analyst in a client note.

Potential suitors for the property weren’t mentioned

.

The loss of the stadium deal represents another interesting chapter for the 96 acres owned by Red Rock near Tropicana Boulevard and Interstate 15.

Earlier this century, the gaming company wanted to use a portion of that acreage for mega three-hotel casino complex, but that plan was scuttled amid the global financial crisis. Several years ago, it was speculated that the land could be the site of Allegiant Stadium, but obviously that didn’t materialize.

Twenty of those acres were previously occupied by Red Rock’s Wild Wild West Gambling Hall & Hotel, which the operator shuttered last September and later demolished.

Looking ahead, perhaps two things are abundantly clear. Red Rock could be sitting on a goldmine with this land. Second, it’s unlikely that the land will be sold to another gaming company because Red Rock never sells property to a competitor. Second, it’s unlikely the land will be sold to another gaming company because when Red Rock sells property, it’s never to a competitor.

GLPI Stadium Winner…For Now

Should the A’s move forward with the Tropicana site, Gaming and Leisure Properties stands to benefit. Real estate investment trusts (REITs) have already asked for an adjustment in the $10,5 million a year in rent Bally pays on the property. But there is more. The REIT has a relationship with Bally’s, and it could provide capital to help the operator develop a casino hotel on the proposed stadium’s site. This could be a good option for Bally’s, especially at a moment when banks are reluctant to lend money on major commercial real-estate projects.