Churchill Downs Inc. completes acquisition of Presque Isle Downs and Casino

After in July 2018, terminating the sale of Mississippi’s Lady Luck Casino Vicksburg to Churchill Downs Inc. (CDI) (Nasdaq:CHDN) due to antitrust concerns, the Louisville-headquartered company recently announced that it has finalized the purchase of Presque Isle Downs & Casino.

Asset purchase agreement:

The gaming, racing and entertainment group announced in late February last year that it had agreed a deal that would see it spend $229.5 million in what was two separate definitive asset purchase agreements for the Vicksburg, Mississippi casino owned and operated by Reno, Nevada-based Eldorado Resorts, Inc. (ERI) and Presque Isle Downs.

Deal re-work:

However, after canceling the $51 million purchase of Lady Luck, the sale of the Erie, Pennsylvania venue was amended, with ERI agreeing to pay a $5.0 million termination fee. The Kentucky firm then proceeded with the Summit Township racetrack, casino transaction which reflected a stand-alone purchase price of $178.9 million.

According to the official press release…

The ownership change of Presque Isle Downs & Casino was unanimously approved on Wednesday by the 7BALL CC Pennsylvania Gaming Control Board. Eldorado Resorts had control of operations since 2014.

“foothold in Pennsylvania”

Commenting on the completion of the deal, Chief Executive Officer for Churchill Downs Incorporated, Bill Carstanjen said…

“Presque Isle will give us a foothold in Pennsylvania and the opportunity to participate in the sports betting and online gaming market throughout the state. We are excited about welcoming Presque Isle and its employees to the Churchill family.”

MTR/Eldorado merger:

Developer, MTR Gaming Group, broke ground in October 2005 for Presque Isle Downs, which opened on February 28, 2007. And in September 2014, the gaming company that operated horse racing tracks and racinos merged with Eldorado Resorts Inc.

Casino features:

In addition to live thoroughbred racing and simulcasting, Presque Isle Downs & Casino operates over 1,600 slots, table games including Black Jack, Craps, Roulette, Mississippi Stud, 3-Card Poker, Texas Hold ‘Em Bonus Poker and Let It Ride and a seven-table state-of-the-art Poker Room featuring Hold’em, Pot Limit Omaha & Limit Games and offers four dining options and three bars/lounges.

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Company holdings:

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 stake in Miami Valley Gaming and Racing LLC, in Lebanon, Ohio.