The Strip:

Gaming regulators give final approval to Penn National’s purchase of Tropicana

The exterior of the Tropicana on the Las Vegas Strip.

Penn National Gaming’s acquisition of the Tropicana received the final blessing of Nevada gaming regulators today.

The Nevada Gaming Commission unanimously agreed that Penn National can buy the Strip resort for $360 million, which the casino company said it would do in April. The Gaming Control Board gave the sale initial approval about two weeks ago.

Penn National CEO Timothy Wilmott reminded the commission that his company, which already runs the M Resort in Henderson, has long sought to establish itself in the main tourist area of Las Vegas Boulevard. Penn National hopes to drive visitation to the Tropicana by taking advantage of its database of customers who visit its other properties throughout the country.

Wilmott said his company has been “looking for the right presence on the Las Vegas Strip.”

“We have known for a lot of years ... that many of our customers come to Las Vegas today and are staying at our competitors,” he said.

Wilmott called the $360 million sales price was “very affordable” and said the condition of the resort “surprised us favorably.”

Still, Penn National envisions a two-phase plan for making improvements to the Tropicana. The first phase will be a $20 million investment that will include upgrading the property’s technology to incorporate Penn National’s loyalty program and updating the slot floor. Wilmott described the second phase as a “long-term master plan” that will enhance the resort’s restaurant, bar and shopping options as well as potential hotel room upgrades.

Wilmott estimated that the initial investment would be made over the next three to four quarters, while the second phase will take a few years to implement.

Penn National will also be able to take advantage of its existing operations at the M Resort. Wilmott said the M has established strong business from group customers, but since the resort is not that large it sometimes finds that groups become too big for it.

“We think there’s an opportunity, when groups do outgrow us, to move that group business to Tropicana Las Vegas,” Wilmott told the commission.

Penn National has already appointed Bob Sheldon, a former Kansas casino executive, to oversee the Tropicana and the M. And the company is growing elsewhere, too, having recently opened the Plainridge Park casino in Massachusetts and with another project near San Diego under way.

Wilmott said he expects the sale to close next week.

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Gaming

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