Penn National’s Tropicana purchase gets first regulatory approval in Nevada

The Gaming Control Board said the casino company can buy the classic Strip resort for $360M, a plan that first came to light in April. The acquisition, which still requires consent from the Nevada Gaming Commission, gives Penn National something it has long sought: a property in a prime location on Las Vegas Boulevard.

Jay Snowden, the chief operating officer of Penn National, told the gaming board that Penn National has spent the last few months assembling its team to run the Tropicana once the deal closes. The company has already appointed former Kansas casino executive Bob Sheldon to oversee the Tropicana and the M Resort. Snowden said he’s been speaking with current Tropicana CEO Alex Yemenidjian every week.

As it prepares to take over, Penn National has a two-phase vision for the Tropicana. In the first phase, the company intends to make a $20 million investment that will include facility improvements such as upgrading the property’s technology to incorporate Marquee Rewards, the Penn National loyalty program.

In the second phase, Penn National will look at other property additions such as new shops, restaurants, hotel rooms and entertainment offerings.

Snowden said the first phase should take about eight or nine months, and he mentioned plans to improve the casino floor by removing some old products.

He said the specifics of the second phase will come from a master plan based on customer feedback and that it could entail an investment of about $200 million to the property. But he said that’s “probably a couple years down the road,” so the budget could go up or down.

Board member Shawn Reid was enthusiastic about the sale. “Through Penn’s database, this is going to allow more customers to potentially visit the location. I think this is great for Nevada, great for Las Vegas, great for the location,” he said.

The Gaming Commission is expected to consider the sale for final approval in about two weeks. The transaction is expected to close later this year.