Acquisition of Erie-based land casino operations motivated in part by new online gambling legalisation laws in Pennsylvania
The major Kentucky land and online gambling group Churchill Downs has announced agreements to acquire two land gambling firms, Presque Isle Downs & Casino in Erie, Pennsylvania and Lady Luck Casino in Vicksburg, Mississippi for a total aggregate consideration of approximately $229.5 million, to be paid in cash.
The Lady Luck Vicksburg transaction is expected to close in the second quarter of 2018. Closing of the Presque Isle purchase, which is also conditioned on the closing of the Lady Luck Vicksburg transaction, is expected to close in the fourth quarter of 2018.
Commenting on the Pennsylvanian acquisition, which is conditional on state approvals, CDI chief executive Bill Carstanjen said that Presque Isle will give CDI a foothold in Pennsylvania, which has recently passed legislation authorising real money online gaming.
Presque Isle opened its casino in February 2007 and operates approximately 1,600 slots, 32 table games and a poker room. It began live thoroughbred racing in September 2007 and conducts approximately 100 live thoroughbred race dates each year.
Lady Luck Vicksburg operates approximately 620 slots, 9 table games and includes an 89-room hotel.
Both properties are owned by Eldorado Resorts, Inc. a publicly traded casino entertainment company headquartered in Reno, Nevada.