Binion's Horseshoe Hotel & Casino has approximately 360 hotel rooms, 80,000 sf of gaming space, restaurants and a rooftop swimming pool. The purchase price was $20 million--subject to increase by $5 million if, at the termination of the JOA, Harrah's has achieved certain operational milestones. Separately, MTR purchased for $1.8 million one of several parcels the property sits on that previously was ground leased for $232,500 per year.

The JOA will have an initial term of one year, which Harrah's may extend up to three times for a total of two years. Under the agreement, MTR will receive $2.4 million for the initial one-year term. If Harrah's extends for the second year, MTR will receive the greater of $4.8 million or 50% of EBITDA. If Harrah's extends for another six months, MTR receives the greater of $2.7 million or 50% of EBITDA, and the same terms hold true if Harrah's extends for the final six-month period.

MTR says it will seek to hire a majority of the 900 employees displaced by the closing of the property; however, during the term of the JOA, Harrah's will be responsible for all of the property's operating expenses, including payroll and insurance, approximately $6 million per year in rent for parcels that are still ground leased, and for funding the necessary operating capital.