Caesars Entertainment, Inc. (NASDAQ: CZR) (“Caesars” or “CZR”) today announced a definitive agreement to sell the operations of Caesars Southern Indiana to the Eastern Band of Cherokee Indians (“EBCI”) for $250 million, subject to customary purchase price adjustments.
Additionally, in the closing of the transaction, EBCI will enter into a new lease with year one annual rent payments of $32.5 million with VICI Properties Inc. (NYSE: VICI) (“VICI Properties”), that keeps possession of the real property of the property. Because of this trade, Caesars yearly payments to VICI Properties beneath the Regional Master Lease will decrease by $32.5 million on closing of the trade.
Furthermore, effective at the closing of this trade, Caesars and the Eastern Band of Cherokee Indians will expand their existing relationship by entering into a long-term arrangement for its continued use of the Caesars brand and Caesars Rewards loyalty program in Caesars Southern Indiana.
“Expanding our relationship with the Eastern Band of Cherokee Indians is an exciting affair for Caesars Entertainment,” said Tom Reeg, CEO of Caesars Entertainment, Inc.”Since our partnership began back in 1996, we have admired their growth and the success of the own properties. We anticipate increasing our relationship by expanding the Caesars new and Caesars Rewards loyalty program to them at Caesars Southern Indiana.”
“The purchase of Caesars Southern Indiana operating company marks the beginning of an exciting new potential for the Eastern Band of Cherokee Indians,” said Richard Sneed, Primary Chief Eastern Band of Cherokee Indians. “We’re very happy to build upon our long-standing partnership with Caesars as we look to advance our own interests in commercial gaming in the coming years.”
The transaction is anticipated to close in the third quarter of 2021 and is subject to regulatory approvals and other customary closing conditions.
J.P. Morgan and Latham & Watkins LLP represented Caesars Entertainment on the transaction.