Welcome to Indiana
Twin River Worldwide Holdings has made yet another move to expand its casino footprint, agreeing to acquire the Tropicana Evansville casino operations from Caesars Entertainment for $140 million. This will be Twin River’s first entry into Indiana.
Gaming and Leisure Properties, Inc. (GLPI) is also going along for the ride. While Twin River gets the casino operations of the Tropicana, GLPI will buy the actual casino real estate from Caesars for $340 million. It will, in turn, lease the property back to Twin River for $28 million per year.
GLPI will also acquire Twin River’s Dover, Delaware property for $144 million, thus allowing Twin River to buy the Tropicana Evansville without having to dole out any cash. Twin River will lease the Dover facility for $12 million per year.
In addition, Twin River is getting the rights to Tropicana Evansville’s sports betting and online gambling skins.
“We believe this property is a great fit for our portfolio,” Twin River president and chief executive officer George Papanier said. “We are acquiring the operations at a value accretive multiple, while also enhancing our interactive offerings.”
Twin River works well with Caesars
Twin River has a significant recent history with Caesars. It facilitated Caesars’ merger with Eldorado Resorts this summer by acquiring Bally’s Atlantic City from Caesars in order for Caesars and Eldorado to satisfy regulators’ anti-trust concerns. The total purchase price was just $25 million, $6 million of which goes to Caesars, while the other $19 million goes to VICI Properties.
Then, just a couple weeks ago, Twin River bought the actual Bally’s brand from Caesars for $20 million. It is allowing Caesars to keep the Bally’s name attached to its casino in Las Vegas.
Twin River plans to rebrand “virtually” all of its properties with the Bally’s brand and logo. The company has a wide array of brand names, as much of its portfolio has been cobbled together from different acquisitions. Among its casinos include the Hard Rock, Twin River (naturally), Mardi Gras, Golden Gates, and Golden Gulch brands. Consolidating into one brand – especially one as well-known as Bally’s – is likely a wise move.
Keeping active
Early this month, Twin River acquired Jumer’s Casino in Illinois, its first entry into the Land of Lincoln.
And in early July, it completed a deal with Eldorado, taking the Lady Luck Casino in Vicksburg, Mississippi and the Isle of Capri Casino in Kansas City, Missouri off its hands for $230 million.
The company has also been busy in the online gaming and sports betting arenas. It partnered with theScore Bet for an online casino in New Jersey in August, as well as Sporttrade that same month for the country’s first-ever sports betting exchange.