Penn National Gaming (PNG) has taken measures to mitigate the effect of the novel coronavirus disease (Covid-19) on its business, selling and leasing back its Tropicana Las Vegas property and furloughing around 26,000 staff members.
The operator has agreed to sell the Tropicana Las Vegas casino to its principal landlord Gaming & Leisure Properties (GLPI), real estate investment trust spun off from PNG in 2013. GLPI will then lease it back to Penn, for $337.5m in rent credits.
The deal also includes an option for Penn to acquire the operations of GLPI’s Hollywood Casino in Perryville, Maryland at a later date.
“We greatly appreciate the cooperation, creativity and partnership shown by GLPI during this challenging time,” Penn National Gaming president and chief executive Jay Snowden said.