CHESTER, W.Va. — Mountaineer Casino, Racetrack and Resort in Chester is being sold.
Eldorado Resorts announced Monday it’s selling Mountaineer and two of its other casinos to Colorado-based Century Casinos for $107 million.
“The agreements to divest Mountaineer Casino, Isle Casino Cape Girardeau and Lady Luck Casino Caruthersville are consistent with our continued focus on optimizing the results from our regional gaming platform, generating growth through strategic acquisitions and realizing value through sales,” Eldorado CEO Tom Reeg said. “The sale price for these three properties represents an attractive multiple of their aggregate trailing twelve months cash flows and provides additional capital that we expect to deploy for shareholder value enhancing initiatives. Following the completion of these transactions, Eldorado will continue to benefit from our geographically diverse portfolio of regional gaming assets that we believe have potential for further margin growth and increased cash flow.”
Century Casinos said the purchases will will transform it into a premier regional casino operator in North America.
“We believe these assets are a great fit for our portfolio and will complement Century Casinos’ expertise in operating small to mid-sized casinos. We are pleased to partner with VICI Properties to structure this transaction in a manner that we expect will be immediately accretive to our operating results,” Century Casinos Co-Chief Executive Officer Peter Hoetzinger said in a news release.
The transaction still needs regulatory approval. The deal is expected to close in early 2020.
Mountaineer has struggled at times financially during its time as an Eldorado property. The company reported in late 2016 revenues had plummeted to less than half their 2014 levels.
Mountaineer has a 357-room hotel, approximately 1,486 slot machines, 36 table games, a poker room, a racetrack and five dining venues. It is the largest employer in Hancock County.