Caesars Entertainment and real estate investment trust Vici Properties have confirmed a definitive agreement to offload Harrah’s Louisiana Downs Casino, Racing and Entertainment to Rubico Acquisition Corp for $22m.
The Bossier City property promises to deliver “150,000 square feet of fun” and boasts approximately 1,300 gaming machines, table games, thousands of square feet of convention space, and a racetrack that first debuted in 1974.
In a media statement it was said that: “The proceeds of the transactions shall be split $5.5m to Vici Properties and $16.5m to Caesars subject to customary adjustments for cash and net working capital. The annual base rent payments under the regional master lease between Caesars and Vici will remain unchanged.”
The transactions are expected to close at the end of 2020 or early 2021, and are subject to regulatory approvals and other closing conditions.
This latest divestment represents the first sale following the long-awaited merger completion between Eldorado Resorts and Caesars in late July, prior to which Twin River Worldwide rolled-out a number of agreements.
In April, the operator unveiled deals to acquire Eldorado Shreveport Resort and Casino in Louisiana and the MontBleu Resort Casino and Spa in Lake Tahoe, Nevada for $155m from the former, as well as Bally’s Atlantic City Hotel and Casino for $25m from Caesars.
This was followed by the company completing the previously announced purchases of Isle of Capri Casino in Kansas City, Missouri, and the Lady Luck Casino in Vicksburg, Mississippi, for $230m, also from Eldorado.
Following the merger completion, creating the largest casino and entertainment firm in the US and boasting more than 55 destinations worldwide, Caesars has embarked on a ‘Caesars For Danville‘ referendum campaign. This comes ahead of a November ballot regarding the firm’s proposed $400m casino resort to open in three years.
Ahead of Danville natives voting on the project, which received unanimous approval from Danville City Council, subsidiary Caesars Virginia vows to create 900 construction jobs and 1,300 operational jobs, in addition to bringing over $34m annually in additional gaming tax revenue to the city should the green-light be issued.