Indiana’s casino industry is in a very interesting position. Not long ago, the state’s Gaming Board officially approved the massive merger between Caesars Entertainment and Eldorado Resorts. Rumors are now beginning to surface that Churchill Downs is interested in buying Caesars Southern Indiana Casino.
Many feel this move makes sense. This purchase would give this company a huge new stake in the Indiana casino industry. Today, we’re going to look at when Caesars Southern Indiana might be taken over.
Let’s get into it!
Indiana Gaming Board Finally Approves Eldorado-Caesars Merger
In mid-2019, officials within Eldorado Resorts and Caesars Entertainment announced they planned to merge. Caesars had been struggling for years and some experts predicted that another casino company would take it over. The news of the Eldorado-Caesars merger spread like wildfire.
After the merger, this would become the most powerful casino company in the United States. Obviously, a deal of this size takes a long time to complete. The FTC and various state gambling commissions around the country needed to approve the deal before it could come together.
As time went on, more of these commissions gave approval. Towards the end, only Nevada, New Jersey, and Indiana were left to give the green light. In early July, officials within the Indiana Gaming Board gave Eldorado and Caesars the thumbs up to come together.
It was incredible news for these companies. They have since gained all final approvals to come together. Eldorado will take on the Caesars name and now has permission to control all of its properties around the world.
In order for Indiana to approve this deal, however, the Gaming Board requires Caesars to sell some of its properties. That includes the Caesars Southern Indiana Casino. Some analysts are now making their predictions on which company will purchase this popular casino.
Experts Predict Churchill Downs Will Buy Caesars Southern Indiana Casino
As we just mentioned, the new Caesars is now the most powerful casino company in the country. Indiana’s Gaming Board recognized that once the merger is complete, the new company would control 50% to 60% of the state’s gambling revenue. Board members required the company to sell three of its major properties in the state before the merger could be approved.
The Caesars Southern Indiana Casino is set to go up for sale. Many now feel that Churchill Downs will acquire this new venue. It would give the Louisville, Kentucky-based company a major advantage in the local gambling scene.
Indiana gambling analyst Ed Feigenbaum called the move a “no-brainer,” and believes it would help to significantly increase Churchill Downs’ revenue flow.
“Churchill can protect its backyard, add to its Indiana customer base, and obtain a missing link between its Chicagoland properties and Louisville,” he said. “The company has the resources, and should have no trouble being licensed.”
Officials at Churchill Downs are keeping quiet about this possibility. It’s likely that several different companies will bid for the right to acquire this gambling venue.
Is now the best time for companies to invest in new properties, though?
US Casino Companies Remain in a Tough Spot
When the merger between Eldorado and Caesars was first announced, it seemed like the perfect move for both companies. No one could have predicted where the casino industry would be at the time of the merger’s completion. Obviously, things are not ideal right now for major US casino companies.
Gambling revenue across the country remains significantly lower than it was in 2019. Despite most states reopening their casinos, visitation to these gambling venues remains low. Many simply don’t want to play inside a crowded casino during a global pandemic.
This is affecting certain parts of the country worse than others. Casino companies continue to do everything they can to increase their revenue figures. That includes increasing safety measures inside casinos and focusing more on online gambling operations.
Some feel that this is not the best time for casino companies to buy major properties. No one really knows how things will look six months from now. There’s a chance that the US casino industry is in an even worse spot than it is right now.
On the other hand, casino sale prices may be lower now than they were last year. Perhaps that offers Churchill Downs a good opportunity with Caesars Southern Indiana Casino. We’ll need to wait and see how this company moves forward over the next few weeks.
Stay tuned for more US casino news over the next few weeks!