Three Indiana Casinos to Be Sold By 2021
Eldorado Resort Inc. and Caesars Entertainment Corp recently completed a $17.3 billion deal, but that deal came with several stipulations.
One of the requirements of the new deal will have some major impacts on the gaming industry in the state of Indiana.
The deal was more than a year in the making, and there were several important steps that had to take place before it was completed. Now that Eldorado has taken over the “new Caesars,” the company will be forced to sell three properties in Indiana.
The new company now owns five casinos in the state of Indiana, but that number needs to be down to just two by the end of 2020. Four of the properties are the biggest in terms of gross gaming revenue, but the company will need to get rid of some properties so that they don’t create a monopoly in the industry.
The Indiana Gaming Commission was one of the agencies that had a voice in the negotiations between these two companies, and they stipulated that three properties must be sold. The IGC unanimously supported the merger, but only if this stipulation was met.
Set To Be Sold
Eldorado Resorts is expected to sell the Horseshoe Hammond Casino, Caesars Southern Indiana, and Tropicana Evansville. There will likely be many suitors lined up for a chance to acquire these properties, but the ongoing coronavirus pandemic could delay the deals.
These properties are also not as attractive as they were a few months ago as several of the border states to Indiana are also expanding their gaming industry. That will create a level of competition between the states, and that could scare some companies away.
Most of the properties in Indiana are considered regional attractions, which means that residents drive to the locations rather than fly. These types of destinations are more popular now during the pandemic, and that will likely be the case for the foreseeable future. Sports betting, sports, and everything in between has been affected this year due to the pandemic.
This could also be seen as a negative as some of the biggest names in the industry won’t be looking to acquire regional attractions. Companies based out of Las Vegas are unlikely to bid for a property in the state of Indiana.
Bally’s Atlantic City recently sold for just $25 million, and most financial experts predict that these three properties will go for even less than that. The new Caesars company will likely be looking for a much bigger price tag, which could slow up the process.
Another major snag in this process is that the company has a little more than five months to secure potential buyers for each property. Most experts in the gaming industry feel that this isn’t enough time to truly get the appropriate amount of money for each property.
The IGC could give the new company more time to complete the transactions, but that is yet to be determined. The IGC has stated that they want at least one of the properties sold by Dec. 31, 2020, and all three properties must have a buyer in place within the next 18 months.
For more sports news and legal sports betting in Indiana, check out more stories on our blog.
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