Eldorado Resorts to purchase Elgin’s Grand Victoria Casino for $327.5m

After completing its acquisition of Isle of Capri Casinos, Inc. around this time last year, Eldorado Resorts Inc. (Nasdaq: ERI) has reportedly entered into a definitive agreement to purchase the Grand Victoria Casino Elgin for $327.5 million. The Reno, Nevada-based gaming company is reportedly also interested in the future development of land situated near the Illinois riverboat casino.

Currently owned equally by MGM Resorts International and a Pritzker family limited partnership, RBG LP, the acquisition will reportedly be finalized later this year and will further grow Eldorado’s reach in the Chicago-area market, reports the Chicago Tribune.

In a conference call yesterday, chairman and chief executive officer for Eldorado Resorts Inc., Gary Carano said, “Grand Victoria is one of the leading casinos in the Ch 7BALL icagoland market and is extremely well-maintained, which will allow us, upon closing, to focus on enhancing the guest experience and operating results without the need to undertake capital investments,” according to the news agency.

In a Monday announcement, Eldorado additionally confirmed a deal with Gaming and Leisure Properties, Inc. (Nasdaq:GLPI), to acquire for $1.85 billion, Tropicana Entertainment. The deal will reportedly see the Wyomissing, PA-based firm pay approximately $1.21 billion for six casino properties including Tropicana Atlantic City, Tropicana Evansville, Lumiere Place, Tropicana Laughlin, Trop Casino Greenville and The Belle of Baton Rouge while Eldorado Resorts Inc., will acquire the operating assets of the six properties for $64 million.

Tropicana Entertainment Inc., a majority-owned business of Carl Icahn’s investing arm, Icahn Enterprises L.P. (NASDAQ: IEP), owns the Tropicana Laughlin Hotel and Casino and the MontBleu Resort Casino & Spa in South Lake Tahoe in Nevada, along with properties in New jersey, Indiana, Mississippi, Louisiana and Missouri.

Carano reportedly further explained that following the finalization of the two transactions, Eldorado, which currently owns various gaming properties in states including Nevada, Missouri, Ohio, Pennsylvania and Louisiana, “has grown from a company that just four years ago was comprised of two wholly owned properties and a 50 percent joint ownership interest … (in) a third property in just two states to a company now that owns 26 gaming properties in 13 states.”

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Licensed in 1994, the Grand Victoria reportedly had gross receipts of $168.7 million in 2017, an increase of 3.4% from the year prior, according to the Illinois Gaming Board. Tax revenue from the Grand Victoria added $45 million to the state’s coffers, a 4.6% gain from 2016, as reported by the Chicago Tribune.

In 2005, Grand Victoria’s co-owner and former manager, Mandalay Resort Group, was acquired by MGM Mirage for $7.9 billion, making it an equal partner of the casino with Hyatt Gaming affiliate RBG LP at the time.