Churchill Downs eyes online betting and gaming with Pennsylvania casino acquisition
Operator acquires Presque Isle property along with licenses for gaming and horseracing
Churchill Downs has acquired Pennsylvania casino property Presque Isle, with one eye on regulated online betting gaming, the operator announced Wednesday.
As part of the deal, Churchill secures a gaming license from the Pennsylvania Gaming Control Board and a racing license from the Pennsylvania State Horse Racing Commission, as well as the casino itself with 1,600 slots, 32 table games and a poker room.
Churchill Downs CEO Bill Carstanjen noted the acquisition gave the operator a foothold in Pennsylvania “which has recently passed legislation authorizing real money online gaming”.
Specific details of the deal were not made available as it was announced alongside the acquisition of Mississippi property Lady Luck Casino.
The total consideration for the two assets was approximately $229.5m in cash, equivalent to a multiple of approximately 8.2 times the properties’ trailing twelve month EBITDA.
The two acquisitions come in states with existing sports betting legislation – Pennsylvania and Mississippi – where licencees would likely be first in line for sports betting g licenses should the federal ban be lifted by the Supreme Court.
“This is an excellent bit of business,” said Daniel Kustelski, co-founder of sportsbook marketing provider Chalkline Sports. “If those two states allow sports betting from the word go, Churchill Downs just got two licences – and for not very much.”
“We are excited about welcoming both of these properties to the Churchill family,” Carstanjen said.
“Both properties fit our investment criteria and will be immediately accretive to our shareholders.”
The deal is expected to close in Q4 2018, with both properties owned by Nevada casino company Eldorado Resorts.
Churchill Downs sold its social casino business Big Fish Games for close to $1bn at the end of November.