Gaming and Leisure Properties Inc. (GLPI), a real estate investment trust, has agreed to purchase the real estate assets of Sunland Park Racetrack & Casino in New Mexico for $183.75 million. The transaction, which received state regulatory approval in late September, is scheduled to close on October 15th.
In a parallel deal, Strategic Gaming Management will acquire the venue's operating assets and lease the property from GLPI, taking over the day-to-day management of the casino and racetrack.
Key Takeaways
- Transaction Value: GLPI will pay $183.75 million for the real estate of Sunland Park Racetrack & Casino.
- Key Parties: GLPI acquires the property, while Strategic Gaming Management will purchase and manage the operations.
- Regulatory Approval: The New Mexico Gaming Control Board and the New Mexico Racing Commission approved the deal on September 30th.
- Operational Continuity: No immediate operational changes have been announced for the property or its approximately 180 employees.
Details of the Acquisition Agreement
The agreement separates the ownership of the physical property from its business operations. GLPI, a Pennsylvania-based company specializing in gaming and leisure properties, will add the Sunland Park location to its extensive portfolio. Strategic Gaming Management will assume control of the gaming and racing licenses, pending final regulatory procedures.
This structure allows GLPI to function as the landlord, collecting rent through a long-term lease agreement with the operator. According to GLPI, the acquisition diversifies its portfolio and supports the growth of an existing partner.
The New Operator: Strategic Gaming Management
Strategic Gaming Management, a company based in Missoula, Montana, will manage the Sunland Park facility. The company was founded by J. Grant Lincoln.
This arrangement expands an existing relationship between the two companies. Strategic Gaming already operates under a master lease with GLPI for two other casinos located in Deadwood, South Dakota, and Sparks, Nevada. The addition of the New Mexico property deepens this partnership.
Understanding Real Estate Investment Trusts (REITs)
Companies like GLPI are structured as Real Estate Investment Trusts (REITs). They own and often operate income-producing real estate. In the gaming industry, it is common for REITs to own the physical casino and hotel properties while a separate company manages the gaming operations under a lease agreement. This model provides stable, long-term rental income for the REIT and allows operators to focus on the business of gaming without the large capital outlay of owning the real estate.
Regulatory Approval and Licensing
The transaction required approval from two key state bodies to proceed. On September 30th, both the New Mexico Gaming Control Board and the New Mexico Racing Commission authorized the sale.
The approvals included the transfer of Sunland Park’s racing and gaming licenses to Strategic Gaming Management, effective October 15th. State officials confirmed that their review process evaluated the financial stability and qualifications of Strategic Gaming to ensure the integrity of gaming and racing in New Mexico.
Regulatory authorities stated their review focused on Strategic Gaming’s credentials and its financial commitment to maintain the integrity of gaming within the state of New Mexico.
This regulatory green light was a critical step, confirming that the new operator meets the state's stringent requirements for running a licensed gaming and pari-mutuel wagering facility.
About Sunland Park Racetrack & Casino
The Sunland Park Racetrack & Casino is a significant entertainment and racing destination in southern New Mexico. The facility first opened as a racetrack in October 1960, with the casino being a later addition.
The entire complex spans 157 acres and features a diverse range of amenities. The property's assets are a key part of the valuation in the GLPI acquisition.
Sunland Park by the Numbers
- Property Size: 157 acres
- Casino Floor: 25,000 square feet
- Slot Machines: 737 units
- Electronic Table Games: 12 units
- Racetrack: One-mile thoroughbred and quarter horse track
- Grandstand Seating: 733 seats
- Hotel: 78 rooms (Choice-branded)
Future Operations and Events
Officials have not disclosed any planned changes to the property's operations or its workforce of approximately 180 employees following the sale. The focus remains on maintaining business continuity for guests and staff.
The racing calendar is set to continue as planned. The next live horse racing meet is scheduled to begin in early January and will run for 55 days through early April 2026. The highlight of the season is the Sunland Park Derby, a key race for three-year-old thoroughbreds that awards qualifying points for the prestigious Kentucky Derby.
GLPI's Expanding Portfolio
For Gaming and Leisure Properties Inc., this acquisition marks another step in its strategy of owning premier gaming facilities across the United States. Headquartered in Wyomissing, Pennsylvania, GLPI is one of the largest publicly traded REITs focused on the gaming sector.
With the addition of Sunland Park, GLPI's portfolio will grow to include 68 gaming properties spread across 20 states. The company also noted that the Sunland Park site includes underutilized land, presenting potential opportunities for future expansion and development.
