Caesars & Vici offload Harrah’s Louisiana Downs to Rubico

Caesars Entertainment and real estate investment trust Vici Properties has announced a final deal to discharge Harrah’s Louisiana Downs Casino, Racing and Entertainment for $22 m to Rubico Acquisition Corp.

The Bossier City property aims to have “150,000 square feet of fun” and features around 1,300 gaming machines, table games, thousands of square feet of conference space, and a racetrack that debuted in 1974 for the first time.

In a media release the following was said: “The proceeds of the transactions shall be split $5.5m to Vici Properties and $16.5m to Caesars subject to customary adjustments for cash and net working capital. The annual base rent payments under the regional master lease between Caesars and Vici will remain unchanged.”

The transactions are expected to close by the end of 2020 or early 2021, and are subject to regulatory approvals and other conditions for closing.

This latest divestment represents the first sale since the long-awaited merger between Eldorado Resorts and Caesars was completed by late July, before which Twin River Worldwide rolled out a variety of agreements.

In April, the company announced deals to buy from the former Eldorado Shreveport Resort and Casino in Louisiana and MontBleu Resort Casino and Spa in Lake Tahoe, Nevada for $155 m, as well as from Caesars Bally’s Atlantic City Hotel and Casino for $25 m.

This was followed by the company completing for $230 m, also from Eldorado, the previously reported acquisitions of Isle of Capri Casino in Kansas City , Missouri, and Lady Luck Casino in Vicksburg , Mississippi.

Caesars has embarked on a ‘Caesars For Danville’ referendum drive following the completion of the merger, creating the largest casino and entertainment company in the US and boasting more than 55 destinations worldwide. This comes ahead of a November ballot about the $400 m casino resort planned for the business to open in three years.

Until Danville natives vote on the proposal, which received unanimous approval from Danville City Council, Caesars Virginia subsidiary promises to generate 900 construction jobs and 1,300 operational jobs, in addition to bringing to the city more than $34 million annually in additional gaming tax revenue should the green light be released.