• Mon. Jan 18th, 2021

Caesars Sells Southern Indiana On line casino to Cherokee Tribe in $250M Deal

casino large Caesars Leisure Inc. has agreed to promote its Caesars Southern Indiana casino to the Jap Band of Cherokee Indians (EBCI) for $250 million, information emerged Thursday.
The Southern Indiana property is being offered to the tribal operation a 12 months after Caesars accomplished its $90 million renovation and enlargement.
Caesars Southern Indiana is Caesars’ second property within the Hoosier State the corporate has agreed to promote this 12 months. The casino large introduced in October that it had entered into an settlement to dump Tropicana Evansville to Bally’s Company. That deal is predicted to shut by mid-2021.
Thinning its portfolio of properties in Indiana was one of many circumstances underneath which the state Gaming Fee gave in July its approval for Caesars’ $17.3 billion marriage with fellow casino operator Eldorado Resorts.
The gaming regulator ordered Caesars to promote three of its casinos throughout Indiana by the top of the 12 months to forestall an “undue financial focus” of the state’s gaming trade following its tie-up with Eldorado.
Late final month, the Indiana Gaming Fee gave the casino operator an extra 12 months to discover a purchaser for the third property it intends to promote, Horseshoe Hammond.
The Caesars Southern Indiana Sale
The Jap Band of Cherokee Indians didn’t emerge as a shock purchaser of the Southern Indiana casino. Tribal leaders penned a letter of intent final month to specific their curiosity in buying the lately expanded hotel-casino advanced.
Beneath the phrases of that letter, Caesars was purported to work solely with the Tribal Council for 45 days from the date the casino operator signed the letter. Signing it, the corporate additionally agreed to not “entertain affords from different potential consumers.”
As talked about above, EBCI pays $250 million for Caesars Southern Indiana. The property will preserve its identify and Caesars branding and can stay a part of the Caesars Rewards loyalty program. That has turn into attainable by means of a brand new annual lease settlement EBCI signed with VICI Properties, which owns the land Caesars Southern Indiana is positioned on.
Beneath the phrases of that new settlement, EBCI pays to VICI annual lease funds of $32.5 million. On account of the sale of Caesars Southern Indiana, Caesars’ annual funds to VICI underneath a Regional Grasp Lease settlement between the 2 firms will probably be decreased by $32.5 million.
Commenting on the sale of Caesars Southern Indiana to the Jap Band of Cherokee Indians, Caesars CEO Tom Reeg stated that they’re excited to broaden a long-standing relationship with the tribe and that since they initially teamed up in 1996, they’ve admired their progress and the success of their properties.
Richard Sneed, EBCI’s principal chief, stated that they’re happy to construct upon on their long-standing partnership with the Las Vegas casino large as they “look to advance our curiosity in industrial gaming within the coming years.”
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