- Caesars to sell Indiana Casino?
- The Eastern Band of Cherokee Indians & Caesars sign letter-of-intent
- Caesars also to sell Tropicana Evansville
Caesars Entertainment has been undergoing all sorts of transformations over the last few years and one more change could be on the way. After merging with Eldorado and selling off certain brands, it now looks like one of their properties in Indiana could have new ownership soon too. Let’s take a closer look at this developing story.
Eastern Band Of Cherokee Indians Interested
The Eastern Band of Cherokee Indians and Caesars Entertainment have signed a letter of intent, which now gives the tribal nation 45 days of exclusive negotiations with the brand. The two sides will now engage and try to iron out the details of a sale.
Under normal circumstances, Caesars Entertainment probably wouldn’t be selling off this casino but as a result of their merger with Eldorado Resorts, they have been forced to sell off properties in different parts of the country. That’s because regulators don’t want them to be a monopoly. In Indiana specifically, Caesars must sell three of its five casinos.
While there are a whole host of buyers lined up to get a piece of this particular Caesars casino, the EBCI will now have a month and a half to work out a deal. Time is ticking for Caesars, though, as the Indiana Gaming Commission gave them until the end of the year to sell off their properties.
EBCI Expect Cashflow from Caesars Southern Indiana
One of the main reasons why the EBCI is looking to buy this property is because they want cashflow. This is an established business with a clear track record of earnings. The tribe hopes to take that money and use it for the community with a specific eye on healthcare.
Taking a closer look at the numbers, Caesars paid $14.4 million in tax revenues from July to the end of October, which is the fifth-most among the state’s 12 casinos. It’s also the most out of any of the state’s southern properties. Caesars Southern Indiana has 661 slots and 80 table games, so it is possible that the EBCI tribe has an eye on expanding the offering as it does appear there is some space for it. Caesars had previously earned the state’s approval to up the offering to 1200 slots and 103 table games, which would give them the second-most options in the state.
Obviously, if the EBCI takes over, the COVID-19 pandemic eases away and they are able to expand, they could see some huge gains in the coming years. Hopefully for them, they can find the right price that works for both sides, so that they can complete the acquisition.
Caesars Has Already Sold Tropicana Evansville
As mentioned, Caesars has to sell three casinos by the end of the year, although it does appear that there is some flexibility given the pandemic. Caesars has already reached a deal to sell Tropicana Evansville, which was moved to Twin River Worldwide Holdings and Gaming and Leisure Properties. That deal saw Bally’s (Twin River) buy the operating part of the casino for $140 million while GLPI bought the real estate for $340 million. GLPI then turned around and leased the property to Bally’s for $28 million.
The details for this deal will be finalized in mid-2021 and will still require final approval from the Indiana Gaming Commission.