Churchill Downs completes acquisition of Presque Isle Downs
Churchill Downs Inc. has finalized its nearly $200 million purchase of Presque Isle Downs and Casino in Erie, Pa., a transaction that expands the company’s presence in jurisdictions that have recently authorized sports betting.
Churchill Downs reached an agreement to purchase the property last year from El Dorado Resorts in a deal that valued Presque Isle at $178.9 million. That deal also included an agreement to purchase a casino in Mississippi from El Dorado, but that part of the agreement was scuttled last year.
Presque Isle operates 1,600 slot machines and 32 table games, and its racetrack, which uses an artificial surface, runs approximately 100 live racing dates a year. Purses for the racing operation are heavily subsidized by state-mandated shares of casino revenue.
Pennsylvania casinos have been opening sports books recently despite a $10 million license fee imposed by the state, the highest of any jurisdiction to authorize sports betting. In a release, Churchill said it intended to open a sports-betting operation at Presque Isle.
“Presque Isle gives us a foothold in Pennsylvania and the opportunity to participate in the sports-betting and online-gaming market throughout the state,” said Bill Carstanjen, the chief executive of Churchill, in a release.
The acquisition will be paid for in cash and borrowings from Churchill’s existing line of credit, the company said.
