The Indiana Gaming Commission has granted Caesars Entertainment more time to sell the Horseshoe Casino in Hammond, Indiana.
On Monday, the IGC unanimously agreed to give Caesars a one-year reprieve to sell the Indiana casino. The commissioners sided with IGC executive director Sarah Tait who opined that selling the Horseshoe Casino right now “presents unique challenges” that include the uncertainty over the gaming expansion in illinois and the effects of the COVID-19 pandemic on the gaming industry in general.
She mentioned the lease agreement on the property as one of the reasons. The rapid expansion of the Illinois gaming market on the Chicago area of the region. Likewise, Trait mentioned the pandemic causing uncertainty in the gaming market.
“Granting relief regarding divestiture timing is in the best interest of the state and local community, and will not negatively impact operations at the property.”
Complying With IGC’s Stipulations
The Horseshoe Casino is one of three Indiana casinos that the gaming giant must sell to comply with the IGC’s stipulations for El Dorado’s $17.3B acquisition of Caesars. The sales was directed to prevent an “undue economic concentration of the state’s gaming industry following the merger.
Last month, Caesars announced the sale of Tropicana Evansville to Twin River Worldwide Holdings for $480M. Earlier this month, the Eastern Band of Cherokee Indians signed a letter of intent that gives the North Carolina tribal nation a 45-day period to buy Caesars Southern Indiana.
Caesars is retaining Harrah’s Hoosier Park and Indiana Grand. The two racinos are the only properties that are situated less than an hour away from Indianapolis. Aside from that, state legislature has allowed the two tracks to offer table games this year. Caesars is planning to infuse a combined $60M to add more table games to both spots
Biggest Casino in the State
The Horseshoe Casino is the biggest Indiana casino. Located less than a mile from Chicago and the state line of Illinois, it has 2,135 electronic games and 1,105 table positions which are the most by any Indiana casino.
Per the Gaming Commission’s annual report, the Horseshoe Casino generated a revenue of $309.3M during the fiscal year. That amount is $85M more than the income of the second-largest Indiana casino. It also generated $99.8M in taxes which was nearly double the $51.1M paid by the Indiana Grand.
Horseshoe’s $24.9M in local development agreement funding outpaced the next closest Indiana casinos combined. Hotel Lawrenceburg, Tropicana, and Ameristar East Chicago which have a total of $23.1M.