Twin Rivers Casino Acquisition: What You Need to Know
Twin River’s Casino Acquisition: What You Need to Know
On Thursday, Twin River Worldwide Holdings made headlines by announcing a casino acquisition, acquiring two Eldorado Resorts casinos: the Isle of Capri Casino in Kansas City, Missouri, and the Lady Luck Casino in Vicksburg, Mississippi, for an all-cash deal worth $230 million.
The Isle of Capri Casino has a storied history, once being a target for acquisition by Donald Trump. Now, Twin River expresses intent to redevelop this iconic riverboat casino.
Acquisition spree
The Rhode Island-based Twin River has been on an acquisition rampage. Earlier this year, it completed a reverse takeover of Dover Downs racino in Delaware and has also made agreements to acquire three casinos in Black Hawk, Colorado, from Affinity Gaming, namely the Golden Gates, Golden Clutch, and Mardi Gras casinos.
In addition, Twin River owns several gaming properties including the Hard Rock Casino in Biloxi, Mississippi, which it purchased in 2014, as well as other horse tracks and greyhound tracks throughout Colorado. In total, it operates the Twin River Lincoln and Twin River Tiverton casinos in Rhode Island.
Market Implications
The Lady Luck Casino has been pending sale for some time. Back in March 2018, Churchill Downs Inc. had arranged to acquire the property but ultimately withdrew from the deal, citing complications with the FTC regarding antitrust issues.
As Twin River moves forward with this acquisition, Eldorado is concurrently navigating potential antitrust scrutiny while preparing for a monumental $18 billion merger with Caesars Entertainment. This merger could dominate several markets, raising concerns from regulatory perspectives.
Strategic Moves
Eldorado’s strategy includes divesting some of its assets to alleviate financial pressure prior to the Caesars merger. Recently, it sold two additional properties in Missouri and one in West Virginia to Century Casinos and VICI Properties Inc., demonstrating a trend to streamline operations.
This acquisition signifies Twin River’s commitment to investing its capital into growth-oriented purchases. An analyst with Stifel Investment Services mentioned that the Isle of Capri property presents an exciting redevelopment opportunity, as it is situated in a rapidly evolving area designated for local development.
Conclusion
Twin River’s acquisition of the Isle of Capri and Lady Luck casinos illustrates a bold step toward expansion in the competitive casino market. As the industry continues to evolve, Twin River seeks to assert its authority in the space while potentially revitalizing historic gaming venues.
