US Regional Casino Operator Twin River Worldwide Holdings (TRWH) has picked up yet another of Caesars Entertainment castoffs.
TRWH announced a deal to acquire the Tropicana Evansville, casino operations in Indian from Caesars for $140mn. The deal however consists of no cash outlay on Twin’s behalf. There is a third party involved in the deal, Gaming and Leisure Properties LTD (GLPI).
GLPI has agreed to acquire the land underneath the Evansville casino from Caesars for $340mn. The real estate is leased to the GLPI master lease. The GLPI has leased it back to Twin for an initial rate of $24m per year. GLPI is also acquiring land under the Dover Downs Hotel and Casino of TRWH in Delaware for $144mn. This will be rented back to TRWH for $12mn per year.
So, Caesars gets the $340mn cash in the deal. TRWH has two casinos with ‘unencumbered’ rights to the casino’s sports betting and iGaming skins without putting up cash. The GLPI gets two properties that will give them $36mn per year.
The TRWH now has 15 properties in 10 states. It has acquired many casinos in the last few years. Earlier this month, it acquired Jumer’s Casino in Illinois.
George Papanier, the CEO of TRWH said that the deal of Evansville fits their strategy to acquire assets at an attractive valuation. The casino features a 45k square foot of the gaming floor with a race and sportsbook powered by William Hill. It has four restaurants and 11k square feet of convention space. The reported earnings of the casino back in 2019 was $32mn.
The deal is expected to close by 2021 subjected to regulatory approvals.