EBCI buys operations at Caesars Southern Indiana for $250 million
American casino giant Caesars Entertainment announced Thursday in a release to investors that it has entered into a definitive agreement with Eastern Band of Cherokee Indians (EBCI) for the sale of operations in Caesars Southern Indiana behind $250 million.
"The purchase of the Caesars Southern Indiana operating company marks the beginning of an exciting new future for the Eastern Band of Cherokee Indians.
Richard Sneed, head of the Eastern Band of Cherokee Indians
EBCI and VICI conclude a lease agreement
Upon completion of the transaction, which is subject to customary purchase price adjustments, the tribal operator will enter into a new lease agreement with the property owner, Caesars Real Estate Investment Trust (REIT) VICI Properties starting with a year's rent $32.5 million . Consequently, the annual lease payments from Caesars to VICI under the regional contracts framework will be reduced by the same amount.
"We are pleased to continue our long-standing relationship with Caesars as we look to expand our commercial gaming interests in the coming years."
Richard Sneed, head of the Eastern Band of Cherokee Indians
Caesars and EBCI extend their partnership
At the close of the transaction, Eastern Band of Cherokee Indians i Caesars will enter into a long-term agreement as an extension of their existing partnership to allow the tribal operator to continue to use the Caesars brand and the Rewards loyalty program at the casino property. in Indiana.
"Expanding our partnership with the Eastern Band of Cherokee Indians is an exciting development for Caesars Entertainment. Since our partnership began in 1996, we have admired their growth and the success of their properties. We look forward to strengthening our partnership by extending the Caesars Loyalty Program and Caesars Rewards to them at Caesars Southern Indiana."
Tom Reeg, CEO of Caesars Entertainment
The tribe with North Carolina and the casino operator have a long-standing partnership that includes Caesars acting for the tribe Harrah's Cherokee Valley River in Murphy and Harrah's Cherokee in the Smokey Mountains.
Earning Caesar Awards
The transaction, which is expected to close in the third quarter of 2021, Subject to regulatory approvals and other customary closing conditions, is the first for a tribe outside of North Carolina and for the first time, in which Caesars will monetize its rewards program.
Disposal of casino operations occurs upon compliance with the requirement set forth in the summer by Indiana Gaming Control Board (IGCB)before finalizing the transaction o worth $17.3 billion with Eldorado Resorts. The IGBC approved the merger, subject to the necessary divestiture of two properties in the state.
In October, Caesars entered into an agreement to sell Tropicana Evansville for $480 million do fund investment Bally's Corp and Gaming and Leisure Properties (GLPI) , and that deal is still to be finalized next year.
