- Potential payment included in agreement to acquire golf course operating rights
- Bally’s bought lease rights for Ferry Point course in 2023
If Bally’s is successful in procuring a Bronx casino license, that would mean a $115 payday for the Trump Organization, which previously operated the golf course on which the gaming company is hoping to build a casino hotel.
In late 2023, the regional casino operator struck a deal with the president’s business group — run by his two eldest sons — to acquire the lease on Trump Golf Links at Ferry Point. At that time, it was believed the purchase price was $60 million, but the agreement included a clause under which Bally’s would pay an additional $115 million to the Trump Organization if a gaming venue is eventually built on the property.
Bally’s further agrees that in the event that any Bally’s Entity is awarded, granted, assigned or otherwise receives (including, without limitation, being selected or announced as the successful bidder in a request for offer or request for proposal process or otherwise) a non-appealable Gaming License (a ‘Gaming Event’), then Bally’s shall make a separate non-refundable payment to Trump in the amount of $115 million,” according to a June 2023 letter from Donald Trump Jr. to then Bally’s President George Papanier.
To the delight of some Bronx-area and New York City politicians, Bally’s made good on its promise to pull the Trump name from the golf course, doing so in January 2024.
If Bally’s Wins Bronx Casino Bid, it Has to Quickly Pay Trump
Rhode Island-based Bally’s is among 11 bidders pursuing three downstate casino licenses and if it’s successful in its quest, it would need to remit that $115 million payment to the Trump Organization or risk being subject to hefty interest penalties.
In Trump Jr.’s letter to Papanier, the former states that the gaming company has 10 days to send that payment “following the occurrence of an Extension Event or Gaming Event.” If Bally’s fails to make that payment, it’d be subject to a 10% annual interest penalty “calculated on the basis of actual days elapsed, based on a 360-day year, from the due date to the date of payment.”
That letter, like the golf course itself, has some interesting history. It was presented as evidence in the state’s suit against President Trump in which it alleged he willfully inflated the value of Trump Organization assets to gain better loan terms from banks.
Prior to Trump winning the 2016 presidential election, his company and the city worked out an agreement to extend the lease on Ferry Point by 20 years, but after the Jan. 6, 2021 riot at the US Capitol building in Washington, DC, then New York Mayor Bill de Blasio (D) attempted to halt the city’s agreement with Trump’s company. In April 2022, a Manhattan Supreme Court Judge ruled that de Blasio overstepped his authority, allowing the golf course to remain under Trump’s control.
Some Momentum for Bronx Casino Effort
While the competition for the three downstate licenses is fierce and there’s some opposition to a Bronx casino, there are also tailwinds for the effort.
Earlier this week, Sen. Nathalia Fernandez and Assemblyman Mike Benedetto — two Democrats that represent the area including the golf course — introduced legislation that could pave the way for stripping the property of its parkland designation. Without that classification being altered, Bally’s would be unable to pursue a gaming license.
The company also recently said that it would like to sell up to a 10% equity stake in the Bronx casino hotel to Bronx residents.
The post If Bally’s Wins Bronx Casino License, Trump Gets $115M Windfall appeared first on Casino.org.
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