Churchill Downs Gets Regulatory Approval for Rivers Casino Des Plaines

Churchill Downs gets regulatory OK to Purchase Rivers Casino Des Plaines, the Price is expected to be closed Following week

Churchill Downs Inc. obtained on Friday regulatory consent to acquire a Vast Majority stake in Rivers Casino Des Plaines in the Chicago area. However, the casino and racetrack operator is going to have to discover minority and female investors in the house so as to have the ability to finish the deal, news outlet the Daily Herald reports.

Churchill Downs initially announced plans to buy a 50.1% stake at Rivers Casino’s parent company Midwest Gaming Holdings past collapse. The Kentucky operator expected to pay roughly $326 million to the lion’s share of the top-performing casino in the state of Illinois.

Members of the regulatory body voted 4-0 in favor of the trade . It became known that Churchill Downs has determined to up its investment in Rivers Casino to nearly 62 percent .

The Illinois Gaming Board pointed out during its Friday hearing that minority and female ownership interests would fall from 17% at present to below 3% once the trade is closed because the majority of the minority and female investors are selling their holding at the casino to Churchill Downs. Included in the deal, the company has agreed to sell up to 10 percent of Midwest Gaming to minority and female investors over 90 days.

Commenting on yesterday’s favorable vote, Churchill Downs CEO Bill Carstanjen explained they expect to finalize the deal on Tuesday. The official further pointed out that Rivers Casino at Des Plaines is among the most dynamic and effective properties in the whole of the USA.

Churchill Downs hopes to pay $407 million in cash for the vast majority stake in the casino’s parent firm. As mentioned previously, the casino and racetrack owner is purchasing a nearly 62% bet up from the initial plan to get a 50.1% stake. Mr. Carstanjen explained that extra investors agreed to sell their attention.

Rivers Casino will keep its Chairman and CEO following the trade is complete.

Mr. Bluhm told the Illinois Gaming Board yesterday if Churchill Downs had not made its own offer and Midwest Gaming had sold its entire interest in Rivers Casino to a different company, that would have led to considerable job terminations. The businessman went on to state that their staff is significant to them and the trade would not affect the casino’s team .

Churchill Downs is incorporating a full-scale casino with 983 slot machines and 58 table games as well as multiple non-gaming comforts to its own portfolio. The company currently works Arlington International Racecourse in suburban Chicago. Churchill Downs has been trying to get slot machines and other gaming options in the racetrack for years now, but was unable to do this due to regulatory hurdles.

The company has said it has developed curiosity about Rivers Casino not simply because it’s Illinois’ top-performing gambling venue, but also due to the possibility for the nation to legalize sports betting and online gaming .

Last week, Illinois Gov. J.B. Pritzker added the legalization of sports gaming to his budget plan for the upcoming financial year. It’s to be seen if the state Legislature would act on betting this session.

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