Bally's said it would acquire online-gaming company Gamesys JKPTF in a $2 billion deal.
In addition, Bally's said it would issue $600 million of common stock and $250 million of equity units. The company said the proceeds would help pay for the Gamesys purchase.
Shares of Bally's at last check were 11% lower at $54. Gaming & Leisure shares were up 3.3% at $44.76.
The Tropicana Las Vegas Hotel & Casino transaction is expected to close in early 2022.
The purchase price for the Tropicana property's non-land assets is $150 million. Bally's agreed to lease the land underlying the Tropicana property from GLPI for an initial term of 50 years at annual rent of $10.5 million, subject to increase over time.
Bally's and GLPI will also will enter into a sale-and-leaseback transaction relating to Bally's Black Hawk, Colorado, and Rock Island, Ill., casino properties.
Gaming & Leisure Properties will pay Bally's $150 million in this deal.
The lease will have initial annual fixed rent of $12 million, subject to increase over time, the companies said.
Regarding the preliminary results, Bally's estimated first-quarter revenue at more than $185 million, while adjusted earnings before interest, taxes, depreciation and amortization exceeded $50 million. The FactSet analyst consensus called for revenue of $156.5 million.
For the year-earlier first quarter, Bally's reported adjusted Ebitda of $22.1 million on revenue of $109.1 million.
The company said that the latest results stemmed largely from "a month-to-month revenue cadence that accelerated dramatically in March as more COVID-19 restrictions were relaxed across the country."
"We are extremely encouraged by our trends and March numbers," President and Chief Executive George Papanier said in a statement.
"Increased demand assisted by a relaxation of COVID-19 restrictions contributed to outstanding performance toward the end of the quarter, which, based on early indications, has continued into April."