Caesars’ recent merger with Eldorado leaves a potential opportunity for Churchill Downs to take ownership of Caesars’ Southern Indiana Casino.
US.- The $17.3 billion dollar Caesars-Eldorado merger was approved last month with the condition that the new company must sell three of its Indiana properties to prevent a monopoly in the market.
The provision was put into place after Indiana Gaming Board recognised that, following the merger, Caesars would control around 50 to 60 per cent of the state’s gambling revenue.
Churchill Downs, best known for horse racing, runs eight casinos, a video poker business and a multi-state network of off-track betting facilities.
The operator has yet to comment on the matter, but analysts believe purchasing Caesars’ casinos would be a wise move, boosting the company’s position in Indiana’s gaming sector.
Indiana gaming analyst Ed Feigenbaum said: “Churchill can protect its backyard, add to its Indiana customer base, and obtain a missing link between its Chicagoland properties and Louisville.
“The company has the resources (particularly given that it could back off some of its defensive Louisville investments), and should have no trouble being licensed (it already received approval for its sports wagering partnership with Rising Star).”