{"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 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 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 Sign Up Now and get $5 Free Play at PA iLottery!<\/p>\n<\/div>\nLooking at the Presque Isle deal<\/span><\/h2>\n
CDI expands portfolio<\/span><\/h2>\n
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