Eldorado Resorts Incorporated has confirmed the acquisition of the previously announced $327.5m (£253m) purchase of the Grand Victoria Casino in Elgin, Illinois, financed with cash on hand and borrowings under the company’s revolving credit facility.
Confirmed by MGM Resorts International, who owned a 50 per cent interest via a subsidiary, the riverboat casino was also 50 per cent owned and operated by RBG LLP, a subsidiary of Hyatt.
“We thank the employees of Grand Victoria Casino, who have made it a tremendous success over the years, and wish them all the best in the future,” said Dan D’Arrigo, executive vice president and chief financial officer of MGM Resorts.
Located 40 miles from downtown Chicago the property features 1,088 slot machines, 30 table games, a 12-table poker room and four dining options, alongside a variety dining options, meeting and banquet space and event and concert facilities.
Gary Carano, chairman and chief executive officer of Eldorado, commented, “Grand Victoria Casino is an excellent addition to our operations and the transaction is consistent with our long-term strategy to build shareholder value by pursuing accretive acquisitions.
“As with our other recent acquisitions, we intend to quickly implement our proven integration and operating strategies, allowing us to increase margins and cash flow from the property and thus reduce the purchase multiple.
“Grand Victoria Casino is one of the premier casinos in the Chicagoland market and given the quality of the property, our immediate focus is on further enhancing the guest experience and operating results, as there is no need to undertake capital investments at the property beyond normal maintenance expenses. We are very excited to welcome the Grand Victoria employees to the Eldorado family.”
This latest transaction boosts the Eldorado property portfolio to twenty one in eleven states, encompassing a total of approximately 22,000 slot machines and VLTs and 640 table games.