Churchill Downs Acquiring Majority Stake in New Hampshire Casino
Company says it’s buying majority interest in Casino Salem
Key Details of the Acquisition
Casino Salem, located in Salem, New Hampshire, is a gaming venue that has recently opened its doors with an initial phase featuring 100 HRMs and 13 live table games. The company, Churchill Downs, has agreed to acquire a majority equity interest in the venue.
The terms of the transaction were not disclosed, but the deal is expected to be finalized in the current quarter. This acquisition marks a significant move by Churchill Downs into the charitable gaming industry, which differs from traditional casino wagering in that it is operated by a charity rather than a commercial or tribal operator.
Background on Charitable Gaming
Charitable gaming features monetary stakes and potential payouts associated with traditional casino wagering but operates under different rules. It can be offered in various forms, including lotteries, table games, and slot machines. This type of gaming provides an opportunity for operators like Churchill Downs to engage in a new market.
The Benefits of Casino Salem
For Churchill Downs, acquiring Casino Salem offers several benefits. The venue is located at The Mall at Rockingham Park, approximately 30 minutes from downtown Boston, providing easy access to the New England market. This acquisition can help mitigate losses in other states where HRMs have been removed.
Financial Details
The financial terms of the transaction were not disclosed. However, it is expected that the deal will be finalized in the current quarter and will involve the use of capital from an existing revolving credit facility. The acquisition must be approved by the New Hampshire Lottery Commission.
Future Plans
Over the coming months, CDI plans to finalize plans and commence construction of the future phases of the project. This includes a rebranding of the venue, an expansion of the gaming floor, and several food and beverage concepts. The company has another New Hampshire venue, Chasers Poker Room, which will continue to operate independently.
Conclusion
Casino Salem’s acquisition by Churchill Downs marks a significant move into the charitable gaming industry. With its location at The Mall at Rockingham Park and future plans for expansion, this venue is poised to provide opportunities for growth and engagement in the New England market.