GLPI has acquired the properties of New York’s Tioga Downs Casino Resort in a deal valued at $175 million. [Image: Shutterstock.com]
GLPI is expanding its roster
Gaming and Leisure Properties Incorporated (GLPI) has acquired the real estate assets of Tioga Downs Casino Resort for $175 million. The company acquired the property from American Racing & Entertainment and will initially lease it back to the company for a period of 30 years. Annual rent starts at $14.5 million and increases gradually over time.
began operating a full-fledged casino in 2016
Located in upstate New York, Tioga Downs Casino Resort is also home to a harness racing track. The property includes nearly 900 slot machines, 29 table games, a FanDuel sportsbook, a golf course, restaurants and a 160-room hotel. The company began operating a full-fledged casino in 2016 after the New York legislature began allowing commercial operators of Class III gaming establishments in certain regions.
Buffer zone
GLPI is a REIT focused on gaming-related properties throughout the United States. Major tenants include PENN Entertainment and Bally’s Corporation. Peter Carlino, CEO and chairman of GLPI, welcomed the recent deal with Tioga Downs, saying it provides “significant geographic protection from competition.”
The property has no competition within 85 miles.
VICI Properties is another gambling-related REIT that has grown significantly in recent years. The main tenants are MGM Resorts International and Caesars Entertainment.
Carlino noted that this brings the company’s portfolio to 62 properties in 19 states and now works with nine different tenants.
Looking into the future
Jeff Gural, CEO and founder of American Racing, also welcomed the deal and said he looked forward to “becoming a GLPI shareholder.” He expects the resort to continue to grow and is well protected from the impending issuance of three large-scale commercial casino licenses in New York State.
also owns the Vernon Downs Casino Hotel
American Racing also owns the Vernon Downs Casino Hotel, which features over 500 video slot machines as well as live harness racing. The company purchased the property in upstate New York in 2006.
