Eldorado Resorts to Sell Two Venues to Twin River

Eldorado Resorts decided to sell two properties to rival, Twin River Worldwide Holdings. The company announced the deal worth $230m in cash which waits for regulatory approval. As part of the agreement, Eldorado will sell Isle of Capri Casino Kansas City and Lady Luck Vicksburg located in Missouri and Mississippi. The expected date for closure is the beginning of next year.

Eldorado and TRWH Plans

Eldorado Resort plans to spend cash for corporate needs which will include recent $17.3m worth acquisition of Caesars Entertainment. On the other hand, Twin River Worldwide Holdings works on enlargement plans which include a recent deal for three Colorado casinos and a merger agreement with Dover Downs Gaming & Entertainment. CEO at TRWH, George Papanier said:

“Two Eldorado venues are a great fit for our portfolio and will expand the company’s geographic reach into attractive markets.”

TRWH Operation and Conflict with IGT

Twin River Worldwide Holdings holds two Twin River casinos located in Rhode Island. The operator has a long-term deal with the RI Lottery which is responsible for all games of chances across the state.

TRWH has just begun its propaganda against a controversial deal between the state and Lottery supplier, International Game Technology. The deal will allow IGT operator to provide almost 85% of electronic gaming machines (EGM) at two Twin River venues. The operator has also argued that IGT electronic machines bring the lowest revenues compared to other two suppliers. The firm further accused the state of choosing IGT as its leading supplier without holding an open tender for the EGM deal.

IGT chairman, Robert Vincent, reacted:

“There was no need for an open tender when both parties to the existing deal were satisfied with the arrangement.”

He added:

“TWRH approached IGT on May 20, 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.”

Representative, Marc Crisafulli, responded:

“TWRH was compelled to act after learning on May 11 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.”

He added:

“The state could do so much better here but, for some reason which makes no business sense, the governor insists on proceeding without any competition.”

Source:

“Eldorado Resorts selling two casinos to Twin River for $230m”, Strand Stradbrooke, calvinayre.com, July 11, 2019.