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Churchill Downs Abandons Plans to Buy Mississippi Casino

riverboat casino in Mississippi The termination occurred due to a request from the Federal Trade Commission for additional information and documents concerning Lady Luck. The two parties in the deal decided that the time and money to respond to that request would be too high for the deal to proceed. Churchill Downs and Eldorado have created a new deal In the original deal, Churchill Downs had agreed to purchase both casinos for $229.5 million. Now that Lady Luck is no longer under consideration, the two companies have fashioned a new agreement to proceed. Churchill Downs will now purchase Presque Isle Downs for $178.9 million. Interestingly, the company will also pay $100,000 to assume operational control of Pennsylvania’s Lady Luck Casino Nemacolin. The two companies will now submit the amended agreement to the FTC. Their hope is to close the amended proposal by Q4 2018. The potential for sports betting overhangs the new agreement Churchill’s withdrawal from only part of the deal likely springs from the sports betting potential present in the market. Like many gaming companies, Churchill is scrambling to assemble assets (or more accurately, licenses) in states that have legalized or will legalize sports betting soon. So, the retention of its interest in Presque Isle Downs means that Churchill will gain a foothold in Pennsylvania’s nascent sports betting market.

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