Gaming and Leisure Properties, Inc. has announced a major expansion of its real estate portfolio with the purchase of Sunland Park Racetrack & Casino in southern New Mexico. The real estate investment trust (REIT) is paying $183.75 million—rounded in some reports to $183.8 million—for the property, a transaction that carries an initial capitalization rate of 8.2%.

The deal, scheduled to close on October 15, 2025, will be added to GLPI’s Strategic Gaming Leases, with annual rent set at $15 million and built-in escalations of 2% each year. The lease runs for 25 years, with options for two 10-year extensions. According to GLPI, the acquisition will be “immediately accretive” to adjusted funds from operations (AFFO), a key performance metric for REITs.

Peter Carlino, GLPI’s Chairman and CEO, highlighted the significance of the acquisition in a company press release, stating, “Through our acquisition of Sunland Park, we are again diversifying our property portfolio, while again supporting the growth strategy of an existing tenant, as we deepen our relationship with Strategic Gaming, a dynamic and growing gaming operator. This accretive transaction further strengthens GLPI’s reputation as the gaming landlord of choice.”

Sunland Park: A Historic Racino with Expansion Potential

Opened in 1959, Sunland Park occupies about 157 acres near the Texas border. The venue features a 25,000-square-foot gaming floor with 738 slot machines and 12 electronic gaming tables. Its racing facilities include a one-mile Thoroughbred and Quarter Horse track with seating for 733 spectators and a 55-day live racing calendar.

The property also offers a 600-seat ballroom, a simulcast racebook area, and a 78-room hotel managed by a third party. Parking for 1,300 vehicles is available on-site. Importantly, the property includes undeveloped land, which GLPI and Strategic Gaming see as an opportunity for future growth and performance improvements.

Strategically located in the Borderplex region, which encompasses El Paso, Texas, and Las Cruces, New Mexico, Sunland Park serves a market of roughly two million adults. The area has been experiencing rising median incomes, with growth outpacing the national average over the last five years.

Strategic Gaming Expands Role as Operator

The acquisition also strengthens GLPI’s partnership with Strategic Gaming Management, LLC. Founded in 2009 by CEO J. Grant Lincoln, Strategic Gaming operates multiple casinos across the United States. Sunland Park becomes the fourth property leased to Strategic Gaming under its agreement with GLPI, joining Baldini’s Casino in Nevada and two South Dakota properties, Deadwood Mountain Grand and Silverado Franklin.

Under the lease terms, Strategic Gaming will continue operating Sunland Park while GLPI assumes ownership of the underlying real estate. The arrangement underscores GLPI’s preferred strategy of acquiring property assets in “hinterland” or regional gaming markets rather than competing in saturated hubs such as Las Vegas.

Stable Market with Limited Competition

GLPI has underscored the strength of New Mexico’s regulatory environment, noting that the state offers a limited number of gaming licenses, restrictions on gaming positions, and protections against over-concentration of casinos. The tribal gaming compact in New Mexico is also secure, running through 2037.

Currently, the state is home to 21 tribal casinos and five commercial casinos, including racinos like Sunland Park. Regulations prohibit new private casinos within 80 miles of existing racinos, effectively shielding Sunland Park from nearby commercial competition. Its closest rival, Speaking Rock Casino, a tribal property, is roughly 20 miles away in El Paso. The nearest potential commercial casino site in Texas would be about 550 miles distant, giving Sunland Park a relatively protected market position.

The racino has historically performed well, with New Mexico’s non-tribal casino revenue surpassing $225 million annually—except during the pandemic-affected 2020. Revenues peaked at $271 million in 2023, and in 2024 the state’s non-tribal casinos reported $261 million, the third-highest total on record.

Expanding GLPI’s National Portfolio

With this deal, Sunland Park becomes GLPI’s second property in New Mexico, alongside Zia Park Casino Hotel & Racetrack in Hobbs. The acquisition expands the REIT’s total holdings to 69 properties across the country.

Truist Securities acted as financial advisor to GLPI, while CBRE Investment Banking and Macquarie advised Sunland Park on the sale. Analysts praised the transaction for fitting GLPI’s ongoing strategy of acquiring properties in underserved but growing regions, where strong demographics and limited competition provide long-term stability.

As analyst Barry Jonas of Truist Securities noted, “Sunland Park is located in the Borderplex Region consisting of El Paso, Texas, and Las Cruces, NM, which has a large adult population (~2M) and rising median household income. The property also faces limited competition with the closest competitor ~20+ miles away (Speaking Rock) and no proposed commercial casinos within ~550 miles.”

For GLPI, the acquisition reinforces its focus on stable, income-generating gaming assets and deepens its partnership with an operator it has consistently backed. With Sunland Park’s historic track, growing local market, and potential for expansion, the property aligns with GLPI’s broader strategy of investing in high-value, strategically located gaming real estate.