Binion's is being sold by MTR Gaming Group of Chester, WV, which acquired the property from Harrah's in March 2004 for $21.8 million. A source with MTR tells GlobeSt.com the company is selling Binion's and another asset in North Las Vegas in order to focus on its core race track properties in West Virginia and Pennsylvania.
Binion's is expected to remain operational after the sale, which is expected to close around the end of the year. The transaction is subject to approvals by the Nevada Gaming Commission and the City of Las Vegas, and purchase price adjustments based on changes in net working capital and certain capital expenditures between execution and closing.
Harrah's continued to operate Binion's for a year after it sold the asset to MTR. The operating agreement included an earn-out provision. Harrah's claims that earn-out provision entitled it to an additional $5 million beyond MTR's purchase price. The potential obligation will not affect the seal because it remain with MTR, according to the MTR source.
Rock Creek Capital Advisors is acting as financial advisor to Caudill's TLC Casino Enterprises Inc. Lazard acted as financial advisor to MTR Gaming Group.
In February, MTR agreed to sell the Ramada Inn and Speedway Casino in North Las Vegas to Mandekic Companies LLC for $18.2 million. In May, Mandekic assigned its purchase and sale agreement to MAST Gaming LLC, which is not currently licensed to conduct gaming operations in Nevada. The closing of the Speedway deal is expected to take place within thirty days of receipt of all regulatory approvals, which the MAST must obtain by February 2008.
The assets MTR is looking to focus on include Mountaineer Race Track & Gaming Resort in Chester, WV; Presque Isle Downs & Casino in Erie, PA; and Scioto Downs in Columbus, OH. The company also owns a 90% interest in Jackson Trotting Association LLC, which operates Jackson Harness Raceway in Jackson, MI, and a 50% interest in the North Metro Harness Initiative LLC, which is constructing a harness racetrack and card room 30 miles north of downtown Minneapolis.
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