After declaring in late February that it had agreed a deal that would see it spend $229.5 million to obtain the Presque Isle Downs and Casino at Pennsylvania and Mississippi’s Lady Luck Casino Vicksburg (pictured), Louisville-headquartered Churchill Downs Inc. (CDI) (Nasdaq:CHDN) reportedly won’t be purchasing the latter after all.
Based on the official media launch , the sale of the Vicksburg, Mississippi casino owned and operated by Reno, Nevada-based Eldorado Resorts, Inc. (ERI) has been terminated as a result of antitrust concerns and the selling of Erie, Pennsylvania venue has been amended, together with ERI agreeing to cover ERI a $5.0 million termination fee.
The February 28, 2018 announcement by CDI advised that it had entered into both different definitive asset purchase agreements for a total cash consideration of $229.5 million, together with all the Presque Isle transaction representing a standalone purchase price of $178.9 million, which the Kentucky firm will proceed with.
The 51 million purchase of Lady Luck was canceled, CDI will instead look to operate the Lady Luck Casino Nemacolin at Farmington, Pennsylvania for a cash consideration of $100,000; the transport states Eldorado will provide it with tax benefits.
Churchill Downs Inc. owns Churchill Downs Racetrack, home of the Kentucky Derby and Kentucky Oaks, in Addition to 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 at Vicksburg, Miss.; a casino at Oxford, Maine; along with a 50 percent stae at Miami Valley Gambling and Racing LLC, in Lebanon, Ohio.
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