GLPI acquires Bally's Lincoln casino in $700M Rhode Island gaming deal
Gaming and Leisure Properties, Inc. (GLPI) has completed a major acquisition in Rhode Island. The company purchased the real estate assets of Bally's Lincoln game for $700.0 million. The deal expands GLPI's portfolio under its existing lease agreement with Bally's Corporation.
The transaction covers a 190-acre site that includes a 165,000 sq. ft. game facility, 136 hotel rooms, and a 29,000 sq. ft. convention centre. Additional amenities feature multiple dining and entertainment venues, some of which were part of a $100.0 million upgrade in 2021. That expansion added a 40,000 sq. ft. game floor, a poker room, a cigar bar, and a 14,000 sq. ft. spa.
GLPI funded the purchase primarily through debt, with the deal expected to boost its adjusted funds from operations (AFFO) per share immediately. The game will join GLPI's Bally's Master Lease II, bringing the total number of properties under that agreement to five. The lease runs until 2039, with four additional five-year renewal options.
The initial annual rent is set at $56.0 million, reflecting an 8.0% capitalisation rate and a 12.5x purchase multiple. Rent increases will be tied to the consumer price index (CPI), with adjustments capped between 1.0% and 2.0% if CPI changes exceed 0.5%. Financial projections suggest a pro forma rent coverage ratio above 2.2x for GLPI and over 1.9x for Bally's Lincoln itself.
Recent performance at Bally's Lincoln has been mixed. Game revenue peaked at around $250 million in 2023 but dipped to roughly $220 million by 2025. This decline contrasts with stronger growth at rival casinos, such as Borgata in Atlantic City, which saw a 15% year-on-year increase. Analysts attribute the drop to rising competition and economic challenges in New England.
After closing, GLPI's net debt to adjusted EBITDA ratio is projected to stay below 5.0x, the lower end of its target range.
The acquisition strengthens GLPI's relationship with Bally's Corporation while adding a well-equipped game property to its lease portfolio. With stable financial metrics and long-term lease security, the deal positions GLPI for continued growth in the regional game market. Bally's Lincoln will now operate under the expanded Master Lease II agreement until at least 2039.
