Deal adds sports and online betting expertise
Delaware horse racing and casino company Dover Downs and online, casino and sports betting company Twin Rivers Worldwide Holdings announced a merger agreement Sunday which they say will transform Twin Rivers into a publicly traded company with gaming and entertainment holdings throughout the United States.
The merger would provide a physical presence for Twin River in the Mid-Atlantic region, a new geographic market, a press release advises.
Twin River executive chairman John E. Taylor Jr. said, “We’re excited about the many benefits we believe we will realize from the combination. Dover Downs and its team are experienced in not only brick and mortar casino operations, but in sports betting, which we think will be helpful as we introduce that amenity at our properties, and in the online gaming sector which continues to evolve nationwide.
“Equally important, we see real opportunities to grow the Dover Downs business through investment in its people and facilities, similar to what we have achieved with our other assets over the past several years.”
Twin River is privately held and there is currently no public market for its shares. As a condition to closing, Twin River will register its shares with the Securities and Exchange Commission and list the shares on the NYSE or NASDAQ.
For the fiscal year ended December 31, 2017, Twin River reported net revenue of $428.8 million and a net income of $63.5 million. Company debt stood at $381.4 million, unrestricted cash and cash equivalents were $64.8 million.
Dover Downs’ president and CEO Denis McGlynn said becoming part of Twin Rivers would be a tranformational development for the company.
“We have been impressed with the depth and talent of the Twin River organization and their operational capabilities. We believe this transaction will help us grow our business, invest in our people and our facilities and compete more effectively given changes in gaming on the horizon. We expect to see many positive benefits for the State, the Delaware Lottery and our employees and stockholders.”