Churchill Downs buy two casinos one in Pennsylvania one in Mississippi. If you follow the news, you already know that Churchill Downs recently made a little fortune. Indeed, two months ago Aristocrat acquired Big Fish Gaming for $990 million. In case you didn’t know Big Fish Gaming is a social gaming company. Churchill down started it over 1 decade ago as a subsidiary entity. Following the sale of the digital company, Churchill Downs went on an acquisition path it seems. Indeed on March 1st a press release surfaced and claimed that Churchill bought two casinos for $229.5 million. Which is more or less a third of what the company received from their sale to Aristocrat.
Churchill’s CEO confirmed the transaction moments after.
“We’re excited about welcoming new members in the Churchill family. Both properties fit our investment criteria. And will be immediately accretive to our shareholders”.
So which casino is Churchill Downs buying?
Churchill confirmed they had inked a deal with Eldorado Resorts. Indeed, under the terms, they’ve agreed to buy the Presque Isle Downs in PA and the Lady Luck Casino in MI. But, even if a price is agreed the deal could still go south. Indeed, it’s important to know that the sale is pending two casino licenses. Which shouldn’t be too hard to get if we believe the rumors. Also, it’s important to understand that both acquisitions are asset purchases. So, its unlikely Churchill will back down. Especially, since they won’t have to pay the full $229.5 million because they’ll receive tax benefits that will reduce the transaction price. Currently, Churchill has announced they’ll be opening the PA venue first. In fact, its estimated that it could open in summer 2018. Churchill has not confirmed if they’ll re-brand the properties. So we’re looking forward to hearing their plans.