A definitive deal to sell the operations of Caesars Southern Indiana to the Eastern Band of Cherokee Indians for $250m has been announced by Caesars Entertainment and real estate investment trust Vici Properties.
Furthermore, at the end of the deal, EBCI will enter into a new lease with annual rent payments of $32.5 million for one year with Vici Properties, which retains control of the property’s real estate.
As a result of this agreement, Caesars’ annual payments under the regional master lease to Vici Assets will decrease upon closing by $32.5m.
John Payne, Vici Properties’ president and COO, said of the agreement: “This transaction provides additional tenant diversification and continues to build Vici’s embedded growth pipeline while allowing Caesars to further their strategic objectives in Indiana.
“After only three years of real estate invest management, Vici has the most tenants of any gaming REIT. We’re thrilled to welcome EBCI as our sixth gaming tenant and look forward to a long partnership as they expand into commercial gaming.”
In addition, Caesars and EBCI will broaden their current relationship effective at the completion of the transaction by entering into a long-term arrangement for the continued use of the property’s Caesars brand and Caesars Rewards loyalty programme.
Richard Sneed, principal chief of the EBCI said: “The purchase of Caesars Southern Indiana operating company marks the beginning of an exciting new future for the Eastern Band of Cherokee Indians.
“We are pleased to build upon our long-standing partnership with Caesars as we look to advance our interests in commercial gaming in the coming years.”
In the third quarter of 2021, the deal is scheduled to close and is subject to regulatory approvals as well as other customary closing conditions.
Tom Reeg, CEO of Caesars Entertainment said: “Expanding our relationship with the Eastern Band of Cherokee Indians is an exciting event for Caesars Entertainment.
“Since our partnership began back in 1996, we have admired their growth and the success of their properties. We look forward to increasing our relationship by extending the Caesars brand and Caesars Rewards loyalty program to them at Caesars Southern Indiana.”