Profitable exit for Tropicana paves way for future development

The Tropicana has always been a symbol of the city’s vibrant nightlife and gaming culture. However, on 2 April, the resort closed its doors, marking the end of an era. Interestingly, the closure was not a result of financial struggles. In fact, the Tropicana was profitable right up to its closing date, according to Peter Carlino, CEO of Gaming & Leisure Properties Inc. (GLPI), (pictured above), the company that owns the resort’s land. During GLPI’s first-quarter earnings call, Carlino confirmed that the Tropicana was cash flow positive when it ceased operations.

This statement was further supported by Brandon Moore, GLPI’s Chief Operating Officer and General Counsel. He explained that the closure was strategically timed to align with the initial pitch for the A’s stadium, suggesting that the Tropicana’s shutdown was not premature but rather right on schedule. The closure of the Tropicana was a strategic move to pave the way for the liquidation of assets and the eventual demolition of the property. This will allow for the commencement of the A’s project and the integrated resort in 2025.

Timely shutdown

Clark County has already granted Bally’s Corp., the casino operator and tenant of the Tropicana land, permission to demolish the resort. The permit stipulates that the demolition must occur by October 20. The chairman of Bally’s board of directors, Soo Kim, revealed plans for an implosion in September or October. This timeline provides the Oakland Athletics, the Major League Baseball team relocating to a $1.5 billion, 33,000-seat indoor stadium, ample time for construction.

Moore emphasized that the closure was not an attempt to cut costs or expenses. Instead, it was a matter of on-time closure. With the employees aware of the impending shutdown, Bally’s faced challenges in maintaining adequate staffing levels to keep the resort operational.

GLPI had no expectations for the Tropicana to remain open beyond the actual closing date. As the Tropicana chapter closes, a new one begins with the A’s stadium project. The strategic closure of the Tropicana is a testament to the dynamic nature of Las Vegas, a city that continually evolves to offer new and exciting experiences to its visitors. As we bid farewell to the Tropicana, we look forward to the birth of the A’s stadium and the integrated resort, set to reshape the city’s landscape in the coming years.