{"id":11874,"date":"2018-08-13T19:31:54","date_gmt":"2018-08-13T19:31:54","guid":{"rendered":"https:\/\/www.pokerscout.com\/?p=11874"},"modified":"2018-08-13T20:54:52","modified_gmt":"2018-08-13T20:54:52","slug":"churchill-downs-finalizes-deal-that-gives-them-control-of-two-pa-casinos","status":"publish","type":"post","link":"https:\/\/www.pokerscout.com\/churchill-downs-finalizes-deal-that-gives-them-control-of-two-pa-casinos\/","title":{"rendered":"Churchill Downs Finalizes Deal That Gives Them Control Of Two PA Casinos"},"content":{"rendered":"

Churchill Downs Incorporated<\/strong> (CDI) is just about officially a part of the\u00a0Pennsylvania\u00a0casino market<\/strong>.<\/p>\n

In a Monday<\/strong> press release, the Louisville-based<\/strong> racing, gaming, and online entertainment company announced that it will \u201cassume management\u201d of Lady Luck Casino Nemacolin<\/strong> in Farmington<\/strong> while closing the purchase of Presque Isle Downs & Casino<\/strong> in Erie<\/strong>.<\/p>\n

Looking at the Presque Isle deal<\/span><\/h2>\n

Monday\u2019s announcement brings a close to CDI\u2019s roller-coaster talks with Eldorado Resorts<\/strong>.<\/p>\n

Earlier this year, CDI reached an agreement to purchase both Presque Isle Downs and\u00a0Lady Luck Vicksburg<\/strong> in\u00a0Mississippi<\/strong>. The rationale was that CDI was looking to position itself to enter the sports betting industry<\/strong>.<\/p>\n

The Vicksburg acquisition bottomed out<\/strong>, however, as the casino fell into anti-trust concerns<\/strong> from the FTC. Not all was lost though, as Eldorado Resorts proposed a revised offer<\/strong> that included managerial rights<\/strong> to another Lady Luck.<\/p>\n

\u201cWe are delighted to work with the team at Churchill Downs to move forward with our planned divestiture of Presque Isle Downs and believe the transfer of the management of Lady Luck Nemacolin to Churchill will allow Eldorado Resorts to realize meaningful tax benefits,\u201d Eldorado CEO\u00a0Gary Carano<\/strong> said in a\u00a0July<\/strong> press release announcing the proposed deal.<\/p>\n

The Presque Isle deal, according to the release, was reliant upon the operational acquisition of Lady Luck Nemacolin as well as the termination of the applicable waiting period. The Federal Trade Commission<\/strong> granted an early termination Aug. 3<\/strong>. The Presque Isle transaction also needed approval from Pennsylvania regulators.<\/p>\n

CDI takes over Lady Luck Nemacolin. Additionally, it acquires \u201ccertain assets\u201d\u00a0 from\u00a0Eldorado Resorts<\/strong> for cash consideration of\u00a0$100,000<\/strong>.<\/p>\n

CDI expands portfolio<\/span><\/h2>\n

According to Monday\u2019s announcement, the Presque Isle and Lady Luck Nemacolin transactions are expected to close in the fourth quarter of\u00a02018<\/strong>.<\/p>\n

The two deals are subject to \u201creceipt of gaming licenses from the\u00a0Pennsylvania Gaming Control Board<\/strong>. Additionally, Churchill Downs needs a\u00a0racing license from the\u00a0Pennsylvania State Horse Racing Commission<\/strong>.\u201d<\/p>\n

Once closed, CDI will obtain casino interests in seven eastern states. Eldorado will still own Lady Luck Nemacolin but will lease out operations to CDI.<\/p>\n

When CDI was in talks to acquire Presque Isle and Lady Luck Vicksburg, company CEO\u00a0Bill Carstanjen<\/strong> conceded that online gambling\u00a0was a leading factor. While the Vicksburg side of the deal fell through, Carstanjen\u2019s reasons still certainly rings true.<\/p>\n

From a\u00a0February\u00a0<\/strong>press release:<\/p>\n

\u201cPresque Isle will give us a foothold in\u00a0Pennsylvania\u00a0which has recently passed legislation authorizing real money online gaming.\u201d<\/p><\/blockquote>\n

Presque Isle gains CDI entry into the\u00a0Keystone State<\/strong>, and Lady Luck Nemacolin gives the company an even stronger presence\u00a0\u2014 especially when you consider CDI\u2019s future betting plans.<\/p>\n

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        CDI nearing sports betting?<\/span><\/h2>\n

        Shortly after the Supreme Court decision that changed the sports betting landscape, CDI took steps to enter the regulated wagering industry.<\/p>\n

        In mid-May, CDI finalized a partnership with\u00a0SBTech<\/strong> to create an iGaming platform \u201cconsisting of the consumer website, mobile apps, and back-office systems to manage iGaming and sports wagering.\u201d<\/p>\n

        In a statement at the time, SBTech CEO Richard Carter\u00a0<\/strong>said that the company was:<\/p>\n

        \u201cthrilled to have Churchill Downs as our first U.S. partner. The combination of Churchill\u2019s leading presence in the U.S. market, coupled with SBTech\u2019s deep expertise in regulated sports betting markets globally, makes for an ideal partnership as we enter this monumental chapter in the U.S. gaming industry.\u201d<\/p><\/blockquote>\n

        Around the same time, CDI confirmed plans to offer online gaming in\u00a0New Jersey<\/strong> via the\u00a0Golden Nugget<\/strong> casino license.<\/p>\n

        These deals put CDI on the fast track to potentially offer online gambling and, eventually, sports betting in Pennsylvania.<\/p>\n

        Certainly CDI\u2019s newest acquisitions\u00a0\u2014 Presque Isle and Lady Luck Nemacolin\u00a0\u2014 are vital for the company to enter the sports betting market. That said, CDI will still need to pony up\u00a0$10 million<\/strong> for a sports betting license and then pay\u00a036 percent<\/strong> in taxed revenue.<\/p>\n

        The post Churchill Downs Finalizes Deal That Gives Them Control Of Two PA Casinos appeared first on Play Pennsylvania.<\/p>\n","protected":false},"excerpt":{"rendered":"

        Churchill Downs Incorporated (CDI) is just about officially a part of the\u00a0Pennsylvania\u00a0casino market. In a […]<\/p>\n","protected":false},"author":1,"featured_media":11877,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"link","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","vebbtech_seo_disable_yoast":false,"vebbtech_seo_hide_author":false,"vebbtech_seo_hide_date":false,"vebbtech_seo_hide_factchecker":false,"vebbtech_seo_fact_check_enabled":false,"vebbtech_seo_post_reviewer":0,"vebbtech_seo_post_review_date":"","footnotes":""},"categories":[374,6],"tags":[],"class_list":{"0":"post-11874","1":"post","2":"type-post","3":"status-publish","4":"format-link","5":"has-post-thumbnail","7":"category-industry","8":"category-news-category","9":"post_format-post-format-link"},"acf":[],"yoast_head":"\nChurchill Downs Finalizes Deal That Gives Them Control Of Two PA Casinos -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pokerscout.com\/churchill-downs-finalizes-deal-that-gives-them-control-of-two-pa-casinos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Churchill Downs Finalizes Deal That Gives Them Control Of Two PA Casinos -\" \/>\n<meta property=\"og:description\" content=\"Churchill Downs Incorporated (CDI) is just about officially a part of the\u00a0Pennsylvania\u00a0casino market. 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