Churchill Downs Inc. drops plans to buy casino

Churchill Downs Inc. has cancelled a plan to buy a casino in Mississippi from El Dorado Resorts Inc. after federal anti-trust regulators requested additional information on the purchase, the two companies announced late on Monday.

Churchill Downs will pay El Dorado $5 million as a termination fee in cancelling the $50.6 million transaction, one of two purchase agreements that Churchill reached with El Dorado earlier this year. The other, Churchill’s acquisition of Presque Isle Downs and Casino in Erie, Pa., for $178.9 million, will go ahead as planned, the two companies said.

The Mississippi casino owned by El Dorado, Lady Luck, is located in Vicksburg, where Churchill already owns and operates a casino, the Riverwalk Casino Hotel. In the release, the companies said that the Federal Trade Commission had requested additional information regarding the Lady Luck transaction “pursuant to the Hart-Scott-Rodino Antitrust Improvement Act.”

The two companies said that the Presque Isle transaction is expected to close late in 2018. Churchill owns its flagship track in Louisville, Arlington Park outside Chicago, Fair Grounds Racetrack and Casino in New Orleans, and Calder Race Course in Miami. Calder’s racing operations are currently under lease to The Stronach Group.