Missouri Gaming Commission Approves Century Casinos for Eldorado Resorts Acquisition

Dec 02

The Missouri Gaming Commission (MGC) has granted approval for Century Casinos, Inc. to acquire the Isle Casino Cape Girardeau and Lady Luck Caruthersville from Eldorado Resorts, Inc.

The Isle Casino Cape Girardeau can be found in Cape Girardeau, Missouri. The site is approximately 120 miles south of St. Louis, Missouri and overlooks the Mississippi River. The property opened its doors to the public in 2012. It houses a dockside casino that features 41,500 square feet of casino space, 24 table games, 851 gaming machines, an entertainment centre, a pavilion, and three dining venues.

Lady Luck Caruthersville is a riverboat casino that sails along the Mississippi River in Caruthersville, Missouri. It opened its doors to the public in 1995 and features a dockside casino as well. The casino boasts 21,000 square feet of casino space, 9 table games, 513 slot machines, a 40,000-square-foot pavilion, two dining venues, and a 28-space RV park.

It was in June of this year when Century Casinos entered into a definitive agreement with Eldorado Resorts. The agreement gave them the freedom to acquire the operations of both Cape Girardeau and Caruthersville, along with the Mountaineer Casino Racetrack and Resort, which is located in New Cumberland, West Virginia. The acquisition is reportedly valued at $107 million and is expected to close this month. It is subject to customary closing conditions. The West Virginia Lottery Commission has already granted approval for the acquisition of Mountaineer Casino Racetrack and Resort in September this year.

Century Casinos has recently announced a net operating revenue of $52.9 million for the third quarter of 2019, which reflects a 22% increase year-on-year. Meanwhile, Eldorado Resorts shareholders agreed to a merger with Caesars Entertainment last month in an acquisition deal that is said to be valued at $17.3 billion. The Colorado-based Century and Vici Properties, Inc. is looking forward to finalizing the deals this month, as they are also shelling out $278 million for the real estate assets they are acquiring.

“Eldorado received approval from the Missouri Gaming Commission (MGC) in connection with its pending acquisition of Caesars Entertainment Corporation,” stated the regional gaming company in their official statement. “The transaction is expected to be consummated in the first half of 2020.”

These recent purchases are significant to Century because they will help the company expand their domestic footprint outside Colorado. The company is actually operating 10 land-based gaming properties at this time, but only their two Colorado properties are located in the United States. These purchases enables them to expand their operations in the US market.

Analysts have a positive feeling about the company’s domestic expansion efforts, with at least one analyst saying the company’s current share price does not reflect the benefits of the recent purchases from Eldorado.

For their part, Eldorado is also getting busy in Missouri. After they announced their takeover of Caesars Entertainment, they also revealed that they would sell the Isle of Capri Casino (Kansas City, Missouri) to Twin River Worldwide Holdings. This development will have Eldorado operating two instead of five properties in the state. With the Caesars merger, however, they will soon have a third property in their fold.