A Colorado-based casino company announced Monday that it has signed an agreement to purchase operating assets at the Isle Casino Cape Girardeau and has indicated that a hotel could be added to the property in the future.
In addition, Century Casinos announced the acquisition of the Lady Luck casino operations in Caruthersville, Missouri and Mountaineer Casino, Racetrack and Resort in New Cumberland, West Virginia. All three belong to Eldorado Resorts Inc. of Reno, Nevada.
Century Casinos, headquartered in Colorado Springs, Colorado, announced that it would buy games and other activities on the three properties for an amount of about $ 107 million. Meanwhile, VICI Properties Inc., a New York-based real estate investment company, acquires the real estate assets of the three properties for approximately $ 278 million and sells them to Century Casinos.
"There are three quality assets in strong and stable gaming markets, each of which enjoys a leading position in the region and has long experience in terms of strong and growing profitability," he said. Monday the President and co-CEO of Century Casino, Peter Hoetzinger, adding the acquisition of the two Missouri casinos and the building in West Virginia "almost double the size of our society."
Company officials said the transaction is expected to be finalized in early 2020, pending the approval of antitrust laws and approvals from the Missouri Gaming Commission and the West Virginia Lottery, "as well. than other usual closing conditions. "
Lyle Randolph, Vice President and General Manager of Isle Casino, said in a phone interview that he had learned of the sale going on Sunday night in a phone call from Eldorado Resorts. Currently, Randolph has stated that the Cape Girardeau casino "was operating as usual" and that it did not expect a significant change in the casino's business until at least the sale was finalized. .
"Nothing will change until then," he said.
Century Casinos operates casinos and other gaming facilities in Cripple Creek and Central City, Colorado, Edmonton and St. Albert, Alberta, Canada, and Bath, England. The company also has partial ownership of gambling activities in Poland and Canada and operates several ship-based casinos under agreements with two cruise lines.
The acquisition of gaming activities in Cape Girardeau, Caruthersville and West Virginia will significantly expand New Century's operations in North America, company officials said.
In a conference call with the media and investors on Monday morning, Hoetzinger said the new properties fit in perfectly with New Century's casino portfolio.
"We chose these three casinos because they met all our criteria," he said. "These are medium-sized operations that target the mid-sized local customer; they have been generating strong and stable cash flows for many years, providing the opportunity to generate additional growth through operational improvements (and significantly enhancing our scale and presence in North America. ")
Questioned during the call for "operational improvements" that the company could bring to the Cape Girardeau and Caruthersville operations, Century Casino's president and co-CEO, Edwin Haitzmann, said that he was "Too soon to talk," but he pointed out that the company might consider buying and renovating a small hotel adjacent to the Lady Luck property and "in Cape Girardeau it is planned to build a hotel." However, he added that adding a hotel adjacent to the Isle casino would probably not happen immediately.
VICI Properties has 23 gaming establishments across the country, including Harrah's Metropolis in Metropolis, Illinois; Bluegrass Downs in Paducah, Kentucky; Kansas City City of Harrah; and some real estate in Tunica, Mississippi, near Memphis.
"They own the property but they do not operate the casinos," Randolph said.
In a press release on Monday, John Payne, President of VICI, stated that the company's real estate acquisitions in Cape Girardeau, Caruthersville and West Virginia "demonstrate VICI's ability to achieve value-creating acquisitions for our shareholders. By diversifying our geographic footprint into a new market, West Virginia, we are excited to partner with Century because they are experts in mid-sized regional assets and are starting to expand into the US market. "
The Isle Casino opened in 2012 on North Main Street in Cape Girardeau and offers 41,500 square feet of casino space, 863 gaming machines, 20 table games, three food outlets and a center d & rsquo; # 39; events. It was acquired by Eldorado Resorts in 2016 at the Isle of Capri Casinos.
Lady Luck at Caruthersville is a river casino that opened in 1995. The pier operation includes 21,000 square feet of casino space, just over 500 gaming machines, nine table games, two food courts and a 40,000 square foot pavilion.
The Mountaineer property in West Virginia is a hotel, casino, entertainment and horse racing center located one hour from downtown Pittsburgh. the establishment opened its doors in 1951 with the opening of the casino in 1994. It includes a hotel of 357 rooms, nearly 1500 gaming machines, 36 table games, a poker room, a circuit running and five restaurants.
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