The Easter Band of Cherokee Indians Tribe finalized its $250 million purchase of the Caesars Southern Indiana casino on Friday.
The deal closed after the Indiana Gaming Commission gave its approval on th sale of the casino across the Ohio River in the Hoosier State.
Said R. Scott Barber, chairman of EBCI Holdings Inc:
“We knew that Caesars Southern Indiana has a special legacy of excellence which initially drew us to the casino. As we’ve discovered, Caesars Southern Indiana also employs an excellent workforce and has made meaningful investments in the community over the last two decades. We look forward to building on that success.”
Caesars Southern Indiana to Retain Branding and Rewards Program
Based on the agreement signed in the 2020 purchase, the Caesars Southern Indiana casino will keep its Caesar branding rights and the brand’s loyalty program Caesars Rewards.
EBCI Holdings also announced that they will retain the Caesar Southern Indiana’s roughly 900 management and staff in their current positions.
Previously known as the Horseshoe Indiana Casino, which was a boat on the Ohio River that opened in 1998, the property became Caesars Southern Indiana- a $90M, 100,000 square foot land based Casino in 2019. But after Caesars Entertainment’s $17.3B sale to Eldorado Resorts, Caesars was mandated to sell several of its properties, including the Caesars Southern Indiana.
Triple-Net Lease Agreement with VICI Properties, Inc.
Simultaneous with the closing of the deal, EBCI Holdings also signed a triple-net lease with a subsidiary of VICI Properties Inc. in connection with the real property associated with Caesars Southern Indiana. The lease has a total annual rent of $32.5M and an initial term of 15 years with four five-year tenant renewal options.
Rent under the lease will increase annual by 1.5% beginning in lease year 2 through lease year 5 and the greater of 2.0% or the Consumer Price index beginning lease year 6.
EBCI Holding was created early this year to diversify the holdings of the Eastern Band of Cherokee Indians in the commercial gaming and hospitality business. The Cherokees operate two casinos in Western North Carolina, both of which are managed by Caesars Entertainment. The Southern Indiana casino is their first casino property outside the state.