Eldorado Resorts has two properties on the market. They are up for grabs to rival, Twin River Worldwide Holdings. The sale includes Isle of Capri Casino Kansas City and Lady Luck Vicksburg in Missouri and Mississippi.
The deal, set for the begging of next year, is great, worth $230 million in cash. It is now pending regulatory approval.
Eldorado Resorts needs cash, especially since the acquisition of Caesars Entertainment to the tune of over seventeen million.
As for Twin River Worldwide, they have extravagant plans to acquire three Colorado casinos, plus a merger in the works with Dover Downs Gaming & Entertainment.
According to CEO at TRWH, George Papanier,
“Two Eldorado venues are a great fit for our portfolio and will expand the company’s geographic reach into attractive markets.”
Of note, Twin River Worldwide Holdings owns two casinos in Rhode Island and has struck a long-term deal with the RI Lottery covering all games of chances across the state.
More deals all the time
One of Twin River’s more controversial deals is with International Game Technology, the state lottery supplier.
The arrangement allows the IGT operator to provide upwards of 85% of electronic gaming machines (EGM) at two Twin River venues, although the revenues are low.
Nevertheless, there should have been an open tender for this deal. In response, Robert Vincent, IGT Chairman said,
“There was no need for an open tender when both parties to the existing deal were satisfied with the arrangement.”
Vincent was heard to say that TWRH approached IGT on May 20th, seeking a 50% share of the EGM supplier contract in exchange for publicly supporting IGT’s deal extension.
“The gist of TWRH’s pitch was like – you’re not going to get this without us. The proposal was not given serious consideration and rejected immediately.”
According to Marc Crisafulli, TWRH was compelled to act after learning on May 11th that IGT and the state had reached a tentative deal that would have given IGT 100% control over the state’s EGMs.
“TWRH offered to make an upfront payment in exchange for the state ‘splitting’ its EGM operations. This offer was rejected.”
The state could do so much better, he says, but for some reason which makes no business sense, the governor insists on proceeding without any competition.