GLPI to provide $225 million financing for Caesars tribal casino in California

Gaming and Leisure Properties Inc. (GLPI) said on Tuesday it reached an agreement with Caesars Entertainment and the Dry Creek Rancheria Band of Pomo Indians to provide $225 million in financing for the planned Caesars Republic Sonoma County resort.

The project, now under construction on the site of River Rock Casino in Healdsburg, California, is expected to open in summer 2027. It will feature more than 100 rooms, four restaurants, 1,000 slot machines and 28 table games.

“GLPI will initially act as a lender to the project, with a delayed draw term loan of $180 million, priced at a fixed rate of 12.50%, and a term loan B of $45 million, with a current yield to maturity of 13.95%,” the real estate investment trust (REIT) said in a statement.

The blended interest rate on the financing is 12.79% with a cap rate of 9.75%. GLPI and Dry Creek Rancheria also signed a 45-year lease agreement valued at no less than $112.5 million.

The Pennsylvania-based real estate investment trust (REIT), which owns 68 casinos across 20 U.S. states, has been expanding its role in tribal gaming. Last year, it extended a $110 million loan to the Ione Band of Miwok Indians for the Acorn Ridge Casino project near Sacramento, marking the first external financing arrangement of its kind in Indian Country.

“GLPI remains active in identifying additional opportunities in tribal gaming where partnerships can benefit from our unique funding structures, similar to the value our leading regional gaming operator tenants derive from our relationships,” REIT said in its second-quarter results.

Deutsche Bank analyst Carlo Santarelli described the REIT’s tribal partnerships as a “pipeline catalyst,” citing their potential to broaden development opportunities and add shareholder value.

For Caesars, the deal expands its tribal casino management footprint. The company already manages several tribal properties under the Harrah’s brand and is rolling out the Caesars Republic label, including a planned rebrand of Harveys Lake Tahoe.