After announcing in late February that it had agreed a deal that would see it spend $229.5 million to acquire the Presque Isle Downs and Casino in Pennsylvania and Mississippi’s Lady Luck Casino Vicksburg (pictured), Louisville-headquartered Churchill Downs Inc. (CDI) (Nasdaq:CHDN) reportedly won’t be purchasing the Vicksburg casino after all.
According to the official press release, the sale of the Vicksburg, Mississippi casino owned and operated by Reno, Nevada-based Eldorado Resorts, Inc. (ERI) has been terminated due to antitrust concerns and the sale of Erie, Pennsylvania venue has been amended, with ERI agreeing to pay to ERI a $5.0 million termination fee.
The February 28, 2018 announcement by CDI informed that it had entered into the two separate definitive asset purchase agreements for a total cash consideration of $229.5 million, with the Presque Isle transaction reflecting a stand-alone purchase price of $178.9 million, which the Kentucky firm will proceed with.
The $51 million acquisition of Lady Luck having been canceled, CDI will instead look to operate the Lady Luck Casino Nemacolin in Farmington, Pennsylvania for a cash consideration of $100,000; the transfer says Eldorado will provide it with tax benefits.
Churchill Downs Inc. owns Churchill Downs Racetrack, home of the Kentucky Derby and Kentucky Oaks, as well as casino operations in Miami Gardens, Fla.; racetrack, casino and video poker operations in New Orleans, La.; racetrack operations in Arlington Heights, Ill.; a casino resort in Greenville, Miss.; Vicksburg’s Riverwalk Casino Hotel in Vicksburg, Miss.; a casino in Oxford, Maine; and a 50 percent stae in Miami Valley Gaming and Racing LLC, in Lebanon, Ohio.
Opened on July 12, 1994, Lady Luck Casino Vicksburg’s 25,000-square-foot casino features an 89-room hotel, three restaurants, one bar, 600 slot and video poker machines and 8 table games.