American casino operator Churchill Downs Incorporated has announced the signing of an agreement that will see it spend $229.5 million in order to acquire the Presque Isle Downs and Casino in Pennsylvania as well as Mississippi’s Lady Luck Casino Vicksburg.
Churchill Downs Incorporated declared that the deal with Reno-based rival Eldorado Resorts Incorporated is contingent upon the completion of the ‘usual and customary closing conditions’ including its receipt of licenses from the Pennsylvania Gaming Control Board, the Pennsylvania State Horse Racing Commission and the Mississippi Gaming Commission. If these are all obtained, the Louisville-headquartered firm stated that it expects the Mississippi purchase to be finalized during the second quarter of the year with the Pennsylvania property’s official acquisition following later in 2018.
The announcement comes a little less than two months after Churchill Downs Incorporated banked approximately $990 million by selling its Big Fish Games Incorporated social online gaming subsidiary to Aristocrat Technologies Incorporated. The casino firm stated that the new purchases are to be funded utilizing ‘cash on hand’ alongside its ‘existing credit facility’.
“Both acquisitions are asset purchases, which the company expects will provide tax benefits that will effectively reduce the transaction price multiple,” read a statement from Churchill Downs Incorporated.
Churchill Downs Incorporated explained that Presque Isle Downs and Casino, which is located just outside of the small city of Erie, opened a casino complete with 1,600 slots alongside 32 gaming tables and a private poker room in February of 2007 before premiering live thoroughbred horseracing events some seven months later. The Kentucky operator further detailed that Lady Luck Vicksburg offers around 620 slots and nine gaming tables as well as an 89-room hotel that is located only a few hundred yards south of its existing Riverwalk Casino Hotel.
“We are excited about welcoming both of these properties to the Churchill [Downs Incorporated] family,” read a statement from Bill Carstanjen, Chief Executive Officer for Churchill Downs Incorporated. “Both properties fit our investment criteria and will be immediately accretive to our shareholders.”