Another domino on the Las Vegas Strip has fallen, and that's only the beginning since dominoes generally ripple, sometimes with unintended consequences.
Many of the major moves on the Strip are connected. MGM Resorts (MGM) sold the Mirage to Hard Rock International and that led to it buying the Cosmopolitan. MGM likely planned those two moves, but a company can never be entirely sure that one move it makes will lead to another it wants to see happen.
There was likely a little more surety when Caesars Entertainment (CZR) decided to take the Bally's name off one of its Las Vegas Strip properties. That move was made slightly after Bally's Corp. (BALY) agreed to buy Tropicana's gaming assets from real estate company Gaming & Leisure Investment Properties (GLPI).
Bally's making that move prompted Caesars to begin work to rebrand its property from Bally's to Horseshoe. That's not just a name change, it's actually a major revamp of the property's positioning in the market.
As Bally's, the hotel was sort of just another Caesars resort casino. The Horseshoe brand actually has a long history in Las Vegas and Caesars uses it outside the city as a casino meant to be gambler-friendly.
Now, Bally's has cleared its final hurdle when it comes to taking over Tropicana. That will mean either not that much or a whole lot depending upon your timeline.
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Tropicana Won't Change Much, at Least at First
When Bally's takes over gaming operations at Tropicana, the initial changes will be minimal.
The property is currently operated by Penn National Gaming (PENN), so the biggest initial change will be changing signage to reflect the Bally's Rewards loyalty program instead of Penn's mychoice program. (Penn customers can redeem their points at the company's other properties.)
Bally's President George Papanier told the Nevada Gaming Commission that the company intended to use Tropicana as its western flagship property, Casino.org reported.
Changes, even a name change to reflect the new owner, are not imminent. In fact, Papanier expects his company to wait 18 to 24 months before fully evaluating its options. That does not mean the long-term plan is business as usual at Tropicana.
"But in this case, we think we should also evaluate the potential for a complete redevelopment because of its competitive position in the market right now,” Papanier told the regulatory agency.
The Oakland A's Are Looming Over Las Vegas
Bally's has been discussing building a baseball stadium for the Oakland A's at the Tropicana site. Those discussions have not stopped, even though the A's have been quiet as they continue to talk with multiple sites in Las Vegas as well as one potential stadium location in their current home of Oakland.
“They’re continuing to engage with us and hopefully there will be an opportunity where we could do a joint development,” Papanier said on Sept. 7, the Las Vegas Review-Journal reported.
The A's have also had discussions with Circus Circus owner Phil Ruffin, who owns a 37-acre parcel, the Las Vegas Festival Grounds, adjacent to his resort casino.
"A’s President Dave Kaval noted the team’s interest in the festival grounds early in the search process in Las Vegas, but the focus shifted away from that location as the team’s market research progressed," the Las Vegas Review-Journal reported.
If the A's find a site in Las Vegas, the team plans to build a 30,000-seat stadium with a retractable roof. That's a small stadium by Major League Baseball standards, which would likely lead to games selling out and marquee matchups being hot tickets.
