Gaming operator Churchill Downs Incorporated (CDI) has backed out of a deal to purchase a Mississippi casino after federal regulators expressed competition concerns.

In late February, CDI announced a deal to buy two gaming venues – the Presque Isle Downs & Casino in Pennsylvania and the Lady Luck Casino Vicksburg in Mississippi – from Reno-based Eldorado Resorts Inc (ERI). However, the $50m Vicksburg portion of the deal is now off the table after the Federal Trade Commission (FTC) expressed interest in the exchange.

On Monday, CDI announced that it had “terminated” the Vicksburg acquisition and will pay ERI a $5m termination fee, as stipulated in the parties’ acquisition agreement. The termination came after the FTC requested more info from both parties to ensure the deal didn’t violate the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

CDI says it and ERI mutually decided to terminate the Vicksburg deal based on “consideration of the time and expense needed to reply to” the FTC’s request. CDI already operates two Mississippi casino properties, including the Riverwalk Casino Hotel in Vicksburg, which CDI acquired in 2012.