Casino and race betting operator Churchill Downs Inc. (CDI) has expanded its land-based operations by acquiring two properties in Pennsylvania and Mississippi.
On Wednesday, CDI announced that it had struck deals to acquire the Presque Isle Downs & Casino in Erie, Pennsylvania and the Lady Luck Casino Vicksburg in Mississippi, both of which are owned by Reno-based Eldorado Resorts. CDI will pay $229.5m in cash to acquire the two properties, with $179m allocated for the Presque Isle deal.
Presque Isle offers both racing and casino options, the latter including 1,600 slots, 32 gaming tables and a poker room. Lady Luck features 620 slots, nine tables and an 89-room hotel. The Presque Isle deal is expected to close in Q2 2018, with the Lady Luck transaction expected to follow sometime in Q4.
CDI CEO Bill Carstanjen noted that establishing a foothold in Pennsylvania will allow CDI the opportunity to participate in the state’s newly authorized intrastate online gambling market. CDI already operates online race betting through its TwinSpires advance deposit wagering site and has long expressed an interest in becoming “a significant player” in the non-racing online sector.