Churchill Downs Abandons Plans to Take Over Lady Luck Casino

US racing and casino group Churchill Downs Inc. has abandoned their plans to take over the Lady Luck Casino in Mississippi after state regulators raised concerns over the agreement.

The Kentucky based betting giant agreed to purchase the Lady Luck Casino in Vicksburg, Mississippi as well as The Presque Isle Downs & Casino in Erie Pennsylvania in February from Eldorado Resorts for $229.5 million. The deal would have seen Churchill overtaking the operation both sites. Lady Luck has table games, slots, restaurants, and a hotel on site, making it a full betting destination.

The deal raised concerns to the Federal Trade Commission, who submitted multiple requests to have those concerns addressed. Those concerns led to the two sides opting to terminate the deal at least in part. Churchill will pay $5 million in termination fees to Eldorado, but the groups want to go ahead and purchase the Presque Isle Downs, which is expected to be completed this fall.

In a statement Churchill Downs commented on the aborted deal, revealing: "Following receipt of, and consideration of the time and expense needed to reply to, the second request, pursuant to the termination agreement, Churchill Downs and Eldorado Resorts mutually agreed to terminate their respective rights and obligations with respect to the Lady Luck Vicksburg transaction."

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bgsharpe
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16 July 2018 - 7:36pm
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Not only that the deal will not occur but Churchill Downs will also have to pay a significant amount in termination fees so it'll be nothing but a loss for them, well I guess it's part of the business and you cant win every time, just like in life.

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