Caesars Granted Additional Year to Sell Indiana Casino

Members of the Indiana Gaming Commission unanimously agreed on Monday to give casino operator Caesars Entertainment Inc. an additional year to sell its Horseshoe Hammond property.

Caesars originally had until December 31 to find a buyer for its Hammond casino. However, commissioners shared the opinion that selling the property now “presents unique challenges”, referring to uncertainty over the ongoing gambling expansion in neighboring Illinois and the impact of the Covid-19 pandemic on the state and the national gaming industry.

Sara Tait, Executive Director of the Indiana Gaming Commission, said Monday that granting relief in connection to the sale of Horseshoe Hammond was “in the best interest of the state and local community” and that the move would not “negatively impact operations at the property.”

The Indiana Gaming Commission was among the last regulators to rule on the proposed acquisition of former Caesars Entertainment Corp. by former Eldorado Resorts. Hoosier State gaming regulators gave the $17.3 billion deal the green light in July, but ordered Caesars to sell three of its five Indiana properties by the end of the year.

The sale of the three casinos aims to prevent an “undue economic concentration” of the state’s gaming industry following Eldorado’s acquisition of Caesars. The two companies closed the deal later in July.

Tropicana Casino and Caesars Southern Indiana Already Have Buyers

Caesars is set to also sell its Tropicana Casino in Evansville and Caesars Southern Indiana casino complex in Elizabeth. The casino giant last month announced that it had entered into an agreement to offload Tropicana Evansville to Bally’s Corp. (formerly Twin River Worldwide Holdings) for $430 million. The deal is expected to close by mid-2021.

News also emerged last week that Caesars has signed a letter of intent with the Eastern Band of Cherokee Indians that expresses the tribe’s interest in purchasing Caesars Southern Indiana as long as the involved parties “can agree on terms for the transaction.”

Under the terms outlined in the letter of intent, Caesars has agreed to work exclusively with the tribe for 45 days from the date the casino operator signed the letter and has promised not to “entertain offers from other potential buyers” of Caesars Southern Indiana.

Tribal Principal Chief Richard G. Sneed said last week that the Elizabeth casino is “a business with a known amount of cash flow and a known return to the tribe.”

In 2018, Caesars broke ground on a $90 million project to relocate Caesars Southern Indiana onto dry land, renovate its adjacent hotel, and add new facilities such as restaurants, bars, and other new experiences. Late last year, the operator unveiled the property’s new 110,000-square-foot casino floor with 1,650 slot machines, table games, and a sportsbook.

Caesars has said that it plans to retain its two horse racetracks in Indiana, Harrah’s Hoosier Park and Indiana Grand. The two properties added live-dealer table games early this year.