Reno-based Eldorado Resorts added the 21st casino to its portfolio Tuesday, completing a previously announced purchase of the Grand Victoria Casino in Elgin, Ill., for $327.5 million.
The transaction was announced in April when Eldorado also announced a $1.85 billion acquisition of Tropicana Entertainment, in partnership with real estate investment trust Gaming and Leisure Properties.
Illinois marks the 11th state where the regional casino company has a gaming license. Illinois gaming regulators approved the transaction last week.
“Grand Victoria Casino is an excellent addition to our operations and the transaction is consistent with our long-term strategy to build shareholder value by pursuing accretive acquisitions,” Eldorado CEO Gary Carano said in a statement.
The riverboat casino on the banks of the Fox River – approximately 40 miles west of downtown Chicago – has 1,088 slot machines, 30 gaming tables and 12-table poker room. The property has four restaurants, and nearly 8,000 square feet of meetings and event space.
Carano called the Grand Victoria “one of the premier casinos in the Chicagoland market” and is not in need of a large property renovation investment “beyond normal maintenance expenses.”
“As with our other recent acquisitions, we intend to quickly implement our proven integration and operating strategies, allowing us to increase margins and cash flow from the property and thus reduce the purchase multiple,” Carano said.
Eldorado is acquiring the operating assets of seven Tropicana-owned casinos in six states from corporate raider Carl Icahn. The properties include the Tropicana Atlantic City; two casinos in Nevada – Tropicana Laughlin and MontBleu Resort in South Lake Tahoe; Tropicana Evansville in Indiana; Belle of Baton Rouge in Louisiana; Trop Casino Greenville in Mississippi; and Lumière Place in St. Louis. The deal is expected to close by the end of the year.
MGM Resorts International owned 50 percent of the Grand Victoria and Tuesday it received its 50 percent share of the net proceeds after transaction costs, or approximately $162 million. MGM Resorts acquired Grand Victoria in connection with the company’s acquisition of Mandalay Resorts Group in 2005.
