A new market
Twin River Worldwide Holdings will be entering the Illinois market after announcing that it is set to acquire Jumer’s Casino & Hotel in Rock Island from Delaware North Companies Gaming & Entertainment for $120m.
The financing for this acquisition will be made with cash on hand, cash from ongoing operations, and by drawing from a revolving credit facility. A multiple of Jumer’s adjusted EBITDA for the year ending January 31, 2019 was the basis for the purchase price.
over 870 slot machines and 25 different table games
Jumer’s gaming floor is 40,000 square feet and has over 870 slot machines and 25 different table games. There is also a 205-room hotel on-site, as well as four restaurants, a nightclub, sports bar, and an events center.
This deal will need to regulatory approval before it becomes final and other closing conditions must be met. The expectation is for the deal to close in the second quarter of 2021.
Expanding its presence
Assuming the deal goes ahead, Twin River will have land-based operations in nine states, with 13 properties in all.
Twin River president and CEO George Papanier expressed the company’s delight at entering a new market and spoke about Twin River’s continuing diversification plans despite the COVID-19 pandemic.
He said: “It provides access to a growing gaming market in Illinois, with the potential to capitalize on potentially lucrative sports betting opportunities.”
A busy year
This is the latest in a string of deals that Twin River has committed to in 2020 after being one of the key facilitators for the Caesars Entertainment merger with Eldorado Resorts. Twin River bought a number of casinos from the duo, allowing the merger to get approval in numerous states.
Twin River bought the Mont Bleu Casino Resort & Spa in Nevada and the Eldorado Shreveport Resort and Casino in Louisiana for a total of $155m. It acquired Bally’s Atlantic City from Caesars for $25m. Another deal saw Twin River buy Eldorado’s Lady Luck Casino in Mississippi and the Isle of Capri Casino in Missouri for a total of $230m.
The company’s revenue fell by almost 48% during the first six months of 2020. This was mainly due to the COVID-19 pandemic forcing casinos to close casinos across the country for months. Its net loss was $23.6m for the period, compared to a net profit of $17.2m in the first half of 2019.