Dover Downs casino owner Twin River Worldwide Holdings, Inc. announced it has entered into a definitive agreement to acquire the operations and real estate of Isle of Capri Casino Kansas City in Kansas City, MO and Lady Luck Casino Vicksburg in Vicksburg, MS from Eldorado Resorts, Inc. in a cash transaction for $230 million.
Eldorado,which owns the Tropicana Resort in Atlantic City, has announced plans to acquire gaming giant Caesar’s. The deal would give the company a large chunk of the Atlantic City and Las Vegas gaming markets.
Eldorado also plans to sell three Caesar’s casinos, Harrah’s in Atlantic City, Harrah’s in New Orleans as part of the buyout. Earlier, Eldorado announced plans to sell three casinos in Missouri and West Virginia.
Twin River acquired Dover Downs earlier this year after the DelawareGeneral Assembly in 2018 offered modestrelief to the state’s three racinos. Delaware’s revenue-sharing is among the highest in the nation.
The acquisition is expected to immediately add to earnings. Twin River expects to finance the most recent purchase price with available cash.
“This transaction continues our focus on creating long-term shareholder value as we strive to develop or acquire assets which we believe will prove accretive to our earnings,” George Papanier, CEO of TRWH stated. “Isle Kansas City and Lady Luck Vicksburg expand our geographic footprint with assets in attractive markets. We believe these assets are a great fit for our portfolio and see the opportunity to increase the net cash flow from these properties by our redevelopment and operating plans. In particular, in Kansas City, where the property lies within an area near downtown that has been targeted by local officials for development, we feel there is an opportunity for capital investment in the property which we believe will have a transformative impact and integrate well with local development efforts in the area.”
Isle of Capri Casino Kansas City is located in Kansas City, Missourioverlooking the Missouri River. The property consists of approximately 40,000 square feet of casino space, 939 gaming machines, 13 table games, and two dining venues.
Lady Luck Casino Vicksburg is located along the Mississippi River. The property features approximately 25,000 of casino space, 603 slot machines, eight electronic table games, three dining venues, and an 89 room hotel.
By contrast, Dover Downs is far larger, with 2,500 slot machines and a 500-room hotel.
The purchase of the casinos is expected to be completed by early 2020, subject to regulatory approvals.
Twin River is based in Rhode Island operates casinos in Rhode Island, Delaware, Mississipi and a race track and off-trackbetting operation in Colorado.