VICI Properties Inc. VICI has partnered with Hard Rock International to complete a $745-million buyout of JACK Cincinnati Casino.
What Happened
VICI announced Friday that it will acquire 100 percent of the land and real estate assets of JACK Cincinnati for $558 million. As part of the deal, Hard Rock International will also acquire the casino’s operating assets for $187 million.
Why It’s Important
JACK Cincinnati opened in 2013 as the Horseshoe Casino before being rebranded as JACK in 2016. The casino is about 100,000 square feet and contains approximately 2,000 gaming machines, 85 table games and a 31-table World Series of Poker room.
VICI Properties is a 2017 spin-off of casino giant Caesars Entertainment Corporation CZR and now owns 23 casinos, hotels and racetracks and three golf courses across the U.S.
“This transaction expands our geographic footprint into one of the fastest-growing regional markets,” VICI COO John Payne said in a statement.
The JACK is the second major property Quicken Loans founder and Cleveland Cavaliers majority owner Dan Gilbert has unloaded in recent months. Gilbert's company Jack Entertainment LLC still owns and operates four casinos and racetracks in Maryland, Kentucky and Ohio.
In November, Gilbert agreed to sell the Greektown Casino in downtown Detroit in a similarly structured $1-billion deal with VICI and Penn National Gaming, Inc PENN.
What's Next
While it's been rumored that Gilbert’s sale of Greektown and JACK Cincinnati could be part of a plan to acquire the Detroit Tigers or Detroit Lions, he told reporters in December that no such deal is currently in the works.
"No, we don't even think about it," Gilbert said when asked about buying a Detroit sports team.
VICI shares are up 16.1 percent so far in 2019.
Investors will be watching to see if the wave of consolidation in the U.S. regional casino market continues with further acquisitions — paying particularly close attention to Gilbert’s remaining properties.
VICI shares were trading up 0.62 percent to $22.06 at the time of publication Friday.
Related Links:
Dan Gilbert Selling Detroit's Greektown Casino-Hotel To VICI Properties, Penn National For $1B
Wynn Tests Key Technical Level Following Macau Revenue Beat
Disclosure: Dan Gilbert is an investor in Benzinga.
Photo by JACK Entertainment LLC/Wikimedia.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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