Gaming company and horse racing giant Churchill Downs Inc. (CDI) announced on Tuesday that it has signed a definitive agreement to acquire Hunters poker room in Salem, New Hampshire. Acquisition of New Hampshire’s leading charitable gaming operation paves the way for CDI to expand its historic horse racing (HHR) business to a fourth state.
Chasers, a charitable gaming facility located about 30 minutes from downtown Boston, offers poker and a variety of table games to its guests. Since opening in 2017, it has led all New Hampshire charitable gaming operators in gaming revenue and local charitable contributions.explains a press release.
In 2021, New Hampshire allowed existing charity gaming operators to offer historic horse racing at licensed facilities. Following the closing of the acquisition, CDI plans to develop an expanded charity gaming facility in Salem to accommodate Historic Racing Machines (HRMs).
“New Hampshire is an exciting opportunity for us, one that allows us to put our historic racing machine expertise to work for the growing New England market,” noted Bill Carstanjen, President and CEO of CDI. “We look forward to sharing more information about our plans to build a state-of-the-art gaming facility in Salem in the months ahead.”
Under New Hampshire law, a portion of revenue from charitable gaming operations is allocated to state-licensed nonprofit organizations. The transaction is subject to customary and customary closing conditions, including the Company’s receipt of New Hampshire Lottery Commission: it is expected to close in the second quarter of 2022.
At closing, New Hampshire will become the fourth state in which Kentucky Derby operator holds historic horse racing. The company currently has HRDs in Kentucky and has plans in place to operate HRMs in Virginia and Louisiana.
The Louisiana operations will come after the completion of HRM’s expansion into the company’s 14 existing off-track betting facilities. Meanwhile, CDI’s next human resources operations in Virginia will take effect upon the closing of a pending acquisition of the operator Pacific Peninsula Entertainmentincluding its affiliates Rosie’s Game Store HRM facilities.
Churchill Downs announced for the first time that it had reached a definitive agreement to acquire substantially all of the assets of casino and hospitality business Peninsula Pacific Entertainment (P2E) for total consideration of $2.48 billion last month.
The agreement aims to expand the geographic footprint of CDI’s live and historic racing entertainment sites and significantly increase the scale of the business. Churchill Downs will acquire all of P2E’s assets in Virginia and New York, including Colonial Downs Racecourse and Rosie’s Gaming Emporium, as well as the operations of the Hard Rock Sioux City casino property in Iowa.
Deal expected to close ‘by end of 2022’, says Churchill Downs. The operator will need to obtain the appropriate approvals from gaming commissions in the three affected states, and CDI will fund the P2E transaction with a combination of new debt and cash, including pending proceeds from a nearby land sale. Calder Casino.
At the end of February, Churchill Downs declared that he was exit online casino and sports betting companies, but the Kentucky Derby operator said it would still maintain its online horse racing betting operations. CDI’s departure from the sports gaming vertical will occur over the next six months.