Twin River Worldwide Holdings – already in the process of acquiring three casinos in three states – is adding a fourth property to the shopping cart.
The Rhode Island-based regional casino operator announced an agreement Thursday to acquire Jumer’s Casino & Hotel in Rock Island, Illinois for $120 million in an all-cash deal.
Twin River’s two other pending transactions involve Caesars Entertainment – the purchase of Bally’s Atlantic City for $25 million, and Eldorado Shreveport in Louisiana and the operations of MontBleu Resort Casino in Lake Tahoe, Nevada for a combined $155 million.
When the deals are finalized, Twin River will operate 13 casinos in nine states.
Twin River CEO George Papanier said the Illinois transaction helps “expand our regional presence” and “geographic reach.” He said Illinois was “another attractive market” and provides the company an additional state to “capitalize on potentially lucrative sports betting opportunities.”
Jumer’s is located in the Quad Cities area of Rock Island, roughly 175 miles west of Chicago. The property has a 40,000 square foot casino floor with more than 870 slot machines and 25 table games, and its 205-room hotel includes an events center, sports bar, nightclub, and four restaurants.
Earlier this year, Twin River acquired Casino Vicksburg (formerly Lady Luck Casino Vicksburg) in Mississippi and Casino KC (formerly Isle of Capri Casino) in Kansas City, Missouri, from Caesars’ predecessor company, Eldorado Resorts, for $230 million.
“We have demonstrated an ability to integrate and operate acquired casino assets,” Papanier said. “We believe this experience will prove valuable as we look to further enhance Jumer’s financial performance.”
Shares of Twin River, traded on the Nasdaq, closed at $26.85, up 58 cents or 2.21%.
Truist Securities gaming analyst Barry Jonas said that Twin River management is executing on a stated acquisition growth strategy, even amidst the uncertainty in the current COVID-19 environment.
“We think this asset is well-suited for Twin River’s strategy, with a strong opportunity to drive profitable market share via targeted high return on investment marketing spend,” Jonas said. “We think the burgeoning sports betting opportunity likely played a key role during the process, with Illinois online sports betting recently opening up.”
Jonas said it was unclear how Twin River approaches its retail and mobile sports betting operations.
“Illinois is likely a sizable long-term market with potential upside for Twin River,” he said.
According to the Illinois Gaming Control Board, Jumer’s had $66 million in gaming revenue in 2019, the second-lowest total in the 10-riverboat casino Illinois market.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
