The newly configured Caesars Entertainment sold a casino property Thursday, but the deal involved neither one of the company’s Las Vegas Strip resorts nor a gaming facility in Indiana.
Caesars and real estate investment trust VICI Properties instead, in a brief statement, announced the sale of Harrah’s Louisiana Downs Casino and Racetrack in Bossier City to Rubico Acquisition Corp. for $22 million.
Once the deal closes, either by the end of 2020 or in early 2021, Caesars will receive $16.5 million and VICI will receive $5.5 million. The companies said the annual base rent payments under the Regional Master Lease between Caesars and VICI will remain unchanged.
The companies had no other comments on the transaction. No information was provided about the purchaser, and the Louisiana Secretary of State’s office did not have a listing for Rubico Acquisition.
Harrah’s Louisiana Downs is one of six gaming properties that Caesars currently operates in the state.
Eldorado Resorts, prior to its $17.3 billion merger with Caesars, agreed to sell Eldorado Shreveport in Louisiana and the operations of MontBleu Resort Casino in Lake Tahoe, Nevada to Twin River Worldwide Holdings for a combined $155 million.
Harrah’s Louisiana Downs has a thoroughbred horserace track and a 12,000 square-foot casino with 830 slot machines.
Under the terms of the merger, Eldorado acquired Caesars, but the firm has retained the Caesars’ name. Eldorado’s former management is now running the company and has said casino sales would be part of the process moving forward.
“Everything is for sale every day,” Caesars CEO Thomas Reeg said in August. “We are economic animals. We’re always happy to be wowed by an offer.”
After the two Louisiana sales close, Caesars will continue to operate Harrah’s New Orleans, Horseshoe Bossier City, Isle of Capri Lake Charles, and Belle of Baton Rouge in the state.
Reeg further said Caesars is moving forward on selling three of its five Indiana casinos, as ordered by state gaming regulators. In addition, Caesars has said it plans to sell at least one of its nine properties in Las Vegas.
Shares of Caesars closed at $47.62 Thursday on the Nasdaq, down $1.05 or 2.16%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
