Boyd Gaming and Churchill Downs both completed major strategic buyouts on Tuesday, while Caesars announced its plan to sell one of its Las Vegas Strip properties is now off the table. [Image: Shutterstock.com] Economy forced Caesars to change plans
November has started with two household names in US gaming signing off on major strategic acquisitions, while a third has heeded rising interest rates and tighter purse strings and stepped back from its intention to sell one of its eight Las Vegas Strip properties.
The latter, Caesars Entertainment, announced Tuesday that it was shelving its Strip property sale plans. On the same day, Boyd Gaming wrapped up its $170m purchase of online gaming technology firm Pala Interactive. Gaming reporter Howard Stutz sharing the news via Twitter: Boyd Gaming has closed its $170M purchase of Pala Interactive
“The acquisition of Pala Interactive provides us with the technology, products and expertise to create a profitable regional online casino business.” – CEO Keith Smith https://t.co/oQ5p9syWFI @TheNVIndy @boydgaming Tuesday’s biggest deal, however, emerged from the Louisville, Kentucky headquarters of Churchill Downs Incorporated (CDI), which has completed its previously announced acquisition of Peninsula Pacific Entertainment (P2E) for $2.75bn.
CDI’s completed purchase followed receipt of customary licensing approvals from Virginia, New York, and Iowa, and makes it the new owner and operator of racetracks and casinos in New York and Virginia, including Hard Rock Hotel & Casino in Sioux City, Iowa. CDI’s strategy behind its P2E deal is to expand its geographic US footprint.
An opportunity to create a viable regional online casino business, meanwhile, is the aim of Boyd’s Pala gambit. Upstate and downstate focus
With a limited pool of bargain-minded buyers unable to offer what Caesars was asking — approximately $2.5bn — for a Strip property speculated to be Flamingo Las Vegas or Planet Hollywood, the Las Vegas-headquartered casino and hotel giant won’t waste any more energy pursuing a sale.
Caesars CEO Tom Reeg went as far as apologizing to investors over the Las Vegas Strip u-turn during a third quarter earnings call, stating that the challenging market made it “an easy decision” not to sell. The discretionary process […]
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