Churchill Downs to acquire stake in Illinois casino
The company is set to acquire at least a 50.1% stake in Rivers Casino Des Plaines in Illinois.
US.- Churchill Downs Incorporated has announced this week that it has signed a definitive purchase agreement in which it will acquire certain of the ownership interests of Midwest Gaming Holdings, the parent company of Rivers Casino Des Plaines in Des Plaines, Illinois. Churchill Downs will own at least 50.1% of Midwest Gaming.
The transaction establishes the purchase of 100% of the ownership stake in Midwest Gaming, which is held by affiliates and co-investors of Clairvest Group Inc, for approximately US$291 million, and additional units of Midwest Gaming held by High Plaines Gaming, an affiliate of Rush Street Gaming, and Casino Investors in aggregate cash consideration of at least US$326 million.
After the transaction is completed, Churchill Downs and Rush Street will have joint control of Rivers Des Plaines, just as Rush Street has done it with Clairvest since the casino’s opening. Rush Street’s team will continue to manage the day-to-day operations of Rivers Des Plaines.
Churchill Downs CEO Bill Carstanjen said the transactions reflect the company’s strategy of investing in gaming properties with stable, predictable cash flows in diverse markets, particularly in populous states that may ultimately grant access to online casino gaming and sports betting to their brick-and-mortar casino license holders.
“We are thrilled to partner with Neil Bluhm and Rush Street Gaming in Rivers Des Plaines. This property is the crown jewel of Illinois gaming and one of the country’s premier casinos,” Carstanjen said. “This is an exciting opportunity for CDI, given Rivers Des Plaines’ superior design, unparalleled location in the Chicagoland market, high-quality amenities and outstanding team,” he added.
