The gambling field across the United States could be defined as dynamic and this is a well-known fact for people interested in the development related to the local casino operators. Even though for the past several months there had been plans discussed regarding the potential purchase of Lady Luck Casino by Churchill Downs Incorporated now the situation has shifted and there will be changes to the previously reported plans.
It could be recalled that back in February this year Churchill Downs Inc. made public its move to enter a couple of agreements which had the potential to result in the definitive purchase of Presque Isle Downs and Casino located in Erie, Pennsylvania, as well as Lady Luck Casino located in Vicksburg, Mississippi. The overall amount of money dedicated to the two purchase deals amounted to some $229.5 million which was supposed to be paid in cash.
The gambling operator which is overseeing the management of Churchill Downs located in Louisville, Kentucky is renown for its gambling operation throughout the years and this could be visible by the popularity of its racetrack. It hosts the annual Kentucky Derby which attracts the attention of sports wagering enthusiasts from near and far.
In an attempt to diversify its gaming offerings and introduce something innovative to players, the gambling operator was willing to branch out and explore the operation in the regions of Mississippi and Pennsylvania.
This Monday, however, witnessed a significant change of plans, as Churchill Downs announced that it is no longer seeking the purchase of Mississippi’s Lady Luck Casino. The purchase agreement was terminated as a result of the potential expenses which were estimated to result from an existing antitrust arrangement.
Churchill Downs Redirects Attention to Pennsylvania
Eldorado Resorts of Reno, Nevada is the entity which oversees the management of the gambling location. With the help of this purchase, Churchill Downs was willing to expand its offerings in the region, as it has been operating Riverwalk Casino Hotel located in Vicksburg. The month of May witnessed the Federal Trade Commission demanding more information and the required information in relation to the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
As a result of the consequent consideration of time and expenses which would be required, both casino developers weighed their options and decided to make amendments to the package deal and pursue another purchase arrangement. The purchase deal of Lady Luck Casino in Vicksburg was set to amount to some $51 million.
Instead of going with the original plan, Churchill Downs is now going to pursue the acquisition of Lady Luck Casino Nemacolin which is located in Farmington, Pennsylvania. The amount of money required for the said purchase would be $100,000. In addition to that, the gambling operator is set to pay some $5 million in the form of a termination deal to Eldorado Resorts of Reno, Nevada.
According to the latter, this deal is going to prove to be beneficial for the region, as it is going to boost its economy, as well as attract players to it. The purchase of Presque Isle is also still on the table, as the deal amounts to some $179 million. The upcoming weeks are set to see more development regarding the arrangements.