Churchill Downs to acquire Des Plaines casino

The Illinois Gaming Board approved a proposal by the operator to buy a major stake at Rivers Casino’s parent company and take over the venue.

US.- The Illinois Gaming Board (IGB) has approved a request from Churchill Downs Inc. that will give it control of Rivers Casino in Des Plaines. The board members voted 4-0 in favour of the operator’s proposal to buy almost 62% of the venue’s parent company, Midwest Gaming Holdings.

The approval was given under certain conditions, including one that forces Churchill Downs to sell up to 10% of the company to women and minorities investors in no more than 90 days. It follows concerns over all but 24 female and minority investors will sell their shares to the operator, which will leave only 2.7% of ownership to such groups (down from 17%).

“This is one of the most dynamic, successful properties in the United States,” Churchill Downs CEO Bill Carstanjen said about the deal, which is expected to be finalised by Tuesday. “This is a real gem,” he added.

The deal is set to be worth US$407 million, to be paid in cash, despite the original intention was to invest US$326 million, before further investors decided to sell their stake.

“Our team members are important to us,” River Casino’s chairman Neil Bluhm (who will keep his seat) said at the gaming board meeting. “The transaction will not result in any change for our team members. As I said earlier, if we had to sell it at 100 percent, the transaction would have resulted in significant job terminations.”