Churchill Downs to Acquire Majority Stake in River Downs

According to Chicago’s Daily Herald, Churchill Downs is on the cusp of clinching a majority stake of Midwest Gaming that owns Rivers Casino Des Plaines property in Illinois.

The acquisition of 50.1% in shares of the company is close at hand and is principally motivated by the eventual expanding beyond Arlington International Racecourse and the more than likely commencing of sports betting operations.

The supposed fee for purchase of a controlling interest within Rivers Des Plaines is $326 million.

Approval Could Happen Soon

The Churchill Downs’ acquisition bid is currently under review by the Illinois Gaming Board, the state’s official regulatory body…

…who is subjecting the buyer to a string of routine checks such as their overall financial situation, criminal background checks of its executives and a variety of other potential issues.

When (and if) they’re found to have met the state’s requirements, the bid will be put to a vote which could happen as early as this week. Should that too without a hitch, Rivers – a home to 983 slot machines and 58 table games – could be looking into closing this deal in the second quarter of this year.

A Very Welcome Bid

CEO of Midwest Gaming and Rush Street Gaming, Greg Carling, is happy about the prospect of teaming up with Churchill Downs in Des Plaines as “they share our vision for the future of Rivers Casino and our commitment to our team , community and guests.”

He added:

“They have a tremendous record of success and innovation. With their representation on our board of managers, we’re confident Rivers will remain one of the most successful casino destinations in North America and one of the best places to work in Illinois.”

Governor’s Blessings

Newly-elected governor of Illinois, J.B. Pritzker, has already voiced his stance on gambling in his state…

…by saying that he is hopeful of regulating the expanded gambling scene with sports betting proclaimed legal – something that was seen as a sealed deal towards the end of last year when outgoing Governor and Pritzker’s predecessor shockingly put a stop to.

A newly-proposed legislation for sports wagering legalization suggests a $10 million cost for a license (and a $5,000 renewal fee), with taxes on gross gaming revenue at 20%. Analysts estimate that somewhere between $384 and 680 million in gaming revenue could be collected in Illinois on a yearly level – which would bring in between $77m and $136m in tax revenue.

Source:

“Churchill Downs to close Rivers Casino deal”, casinobeats.com, February 25, 2019.