Deal confirmed
Twin River Worldwide Holdings announced on July 2 that it has completed a deal to purchase two casinos from Eldorado Resorts subsidiaries. The properties in question are Lady Luck Casino in Vicksburg, Mississippi and the Isle of Capri Casino in Kansas City, Missouri. The total price tag for these acquisitions is $230m, subject to potential working capital adjustments.
Twin River, which is looking to expand its presence across the United States, believes it can improve net cash flow from the two casinos through their operating and redevelopment plans. The Lincoln, Rhode Island-based gaming company took to Twitter to confirm its latest expansion:
Speaking about this deal was the CEO and president of Twin River, George Papanier. He said: “
We are very pleased to close on this transaction, the latest in our ongoing efforts to diversify our portfolio.”
Papanier added that the company is also excited about the three further casino deals it is currently working on. The properties to be acquired are located in Atlantic City, New Jersey; Lake Tahoe, Nevada; and Shreveport, Louisiana. The company will be looking further at cross-marketing opportunities for its facilities nationwide.
New casino acquisitions
The Isle of Capri Casino overlooks the Missouri River and is close to downtown Kansas City. It has about 40,000 square feet of gaming floor space comprising 939 gaming machines and 13 table games. As part of the acquisition deal, Twin River plans to significantly redevelop the property, with most of this capital expenditure expected to take place in 2021. The facility reopened on June 1 following the COVID-19 pandemic closures.
Lady Luck Casino is on the Mississippi River and has been operating at 50% capacity since reopening on May 21. There is about 25,000 square feet of gaming floor space containing 603 slot machines and eight electronic table games. An 89-room hotel and three dining restaurants are also on-site.
12 casinos across eight states
Twin River has also agreed to buy the Montbleu Resort Casino and Spa in Lake Tahoe and the Eldorado Shreveport Resort and Casino in Louisiana for a total price of $155m. It has another deal in place with Caesars Entertainment and VICI Properties to buy Bally’s Atlantic City Hotel and Casino for a $25m cash deal.
Provided all of these deals go through, Twin River will have 12 casinos across eight states.
Upcoming Eldorado merger
Eldorado Resorts is set to merge with Caesars Entertainment in a deal that was first announced in June 2019, valued at $17.3bn. While there have been a number of stumbling blocks over the past year, including missed deadlines, it now appears to be on the right track.
To get approval from the Federal Trade Commission, Eldorado was advised to sell the Eldorado Shreveport and the Monetbleu Resort Casino. The merger also needs to get the green light from state regulators. The plan is for the deal to be completed by the end of July.