The Louisiana Gaming Control Board (LGCB) has given the green light on the sale of a horse racing track and casino located in the northern part of the state for a price tag of $22 million. Rubico Acquisition Corp. is set to meet with the gaming regulator today and get approval for the purchase of Harrah’s Louisiana Downs.
A Big Win Is In Store for All Parties
Kevin Preston, the president of Rubico, stated that the purchase of Harrah’s Louisiana Downs is a win for all parties involved while speaking to news outlets on Friday. He added that the track is a Bossier City and Northwest Indiana iconic institution and that the company plans to restore it as an entertainment area for the whole family. Games and concessions are also likely to be added to the casino.
Thanks to the sale, Vici Properties will receive a $5.5 million cut, while Caesars Entertainment Inc. will receive $16.5 million, as stated by the companies in 2020.
According to the Times of Shreveport, at Thursday’s meeting, Ronnie Johns, the chairman of the LGCB, said that his belief is that the sale is “critical.” Johns elaborated by saying that if the sale did not go through, the risk of Caesars ultimately closing the iconic racetrack was high. As to why is that the case, he said that Caesars isn’t interested in operating it. Not only that, but the casino operator has tons of other plans in motion, one of which is its groundbreaking betting app, and is far more focused on them.
Under the Agreement, Rubico Must Keep the Casino Open
One of the conditions of the sale of Harrah’s Louisiana Downs is that Rubico must keep the casino open, which won’t be a problem, considering the fact that the casino is actually the main contributor to the operator’s profit.
Even though the sports betting industry is currently finding its stable point in Louisiana, things were not so good a few months ago. After Hurricane Ida hit, the state faced massive destruction and that opened up tons of problems.
One of those problems was the fact that the damage made it impossible for state regulators to issue licenses. Even though Wade Duty, the Louisiana Casino Association’s Executive Director, stated that the licensing period will be delayed for around ten days, the good news was that bettors will still catch a majority of the NFL season.
Many states around the US were battling to legalize sports betting before the start of the NFL season since this sport is, by far, the most popular for betting and it provides massive income for sportsbook operators.