Two Eldorado Casinos Sold to Twin River Holdings For $230M
Twin River Worldwide Holdings has completed its acquisition of two Eldorado Resorts casinos, part of an effort by both companies to best manage their casino portfolios.
Eldorado sold the Lady Luck Casino in Vicksburg, Mississippi, and the Isle of Capri Casino in Kansas City, Missouri, to TRWH for a combined $230 million, both companies announced in news releases on July 2.
The deal was announced just days after the Federal Trade Commission approved of a $17 billion merger between Eldorado and Caesars Entertainment. FTC approval was contingent on the Eldorado-Twin River sale.
Twin River Building Profile
"Isle Kansas City and Lady Luck Vicksburg expand our geographic footprint with assets in attractive markets,” Twin River President and CEO George Papanier said in a company news release. “… Equally exciting are our three additional casinos under contract in Shreveport, Louisiana; Lake Tahoe, Nevada and Atlantic City, New Jersey. We see significant opportunities to create cross marketing connections for customers at multiple Twin River locations nationwide.”
Papanier was referring to not just his company’s two newest casinos but also of a deal, approved in April, whereby his company agreed to purchase two other Eldorado properties — the Mont Bleu Casino & Spa in Lake Tahoe and the Eldorado Shreveport Resort and Casino. At the same time, Twin River also agreed to buy Bally’s Atlantic City Hotel and Casino from Caesars. Those three deals were for a combined $180 million.
The Isle of Capri Casino in Kansas City reopened June 1 after being closed for several weeks in the wake of the coronavirus pandemic, which shuttered all U.S. commercial casinos. The Lady Luck Casino in Vicksburg reopened May 21 and is operating at 50% capacity to comply with practices established in an effort to prevent the spread of coronavirus.
Twin River announced on June 2 that it was reopening many of its casinos after the closures. With its recent acquisitions, the company now has 12 properties in eight states, according to its release.
More on Eldorado’s Moves
Meanwhile, Eldorado continues to reshape the scope of its holdings as it begins merging with Caesars, another casino giant. The company’s casinos will all fall under the Caesars branding.
“The sale of these two assets is consistent with our continued focus on reducing debt ahead of the expected closing for the Caesars transaction,” Eldorado CEO Tom Reeg said in a company news release regarding two latest Twin River deals. The Eldorado-Caesars merger only needs approval in three states.
Eldorado owns 21 facilities in 11 states. Its combined properties account for more than 22,000 slot machines and more than 11,000 hotel rooms. according to the company.