LOUISVILLE, Ky. (Sept. 19, 2012) — Churchill Downs Inc.‘s joint venture with Delaware North Companies Gaming & Entertainment is removing the closing condition requiring the resolution of any gaming-based litigation in its purchase agreement for Lebanon Raceway. The joint venture, Miami Valley Gaming & Racing, LLC, is pursuing the development of a new video lottery terminal and harness track in southwest Ohio.
The sale is still contingent upon the approval of the venture’s applications to the Ohio Lottery Commission and the Ohio State Racing Commission, submitted in July of this year and still under review, as well as other customary closing conditions. Miami Valley Gaming & Racing hopes to begin construction of the new facility this year, with completion scheduled for the first half of 2014.
Miami Valley Gaming & Racing entered into an asset purchase agreement in March of this year, through which it intends to acquire the harness racing licenses and certain assets held by Lebanon Trotting Club (controlled by the Carlo family) and Miami Valley Trotting Inc. (controlled by the Nixon family). These two entities conduct harness racing at Lebanon Raceway at the Warren County Fairgrounds.
Miami Valley Gaming & Racing intends to acquire these assets for an aggregate purchase price of $60 million — $10 million paid in cash with a $50 million promissory note delivered at closing. An additional $10 million could be paid to the sellers if certain conditions are met with respect to the performance of the VLT facility over time.
Churchill Downs, headquartered in Louisville, owns and operates Churchill Downs Racetrack, home of the Kentucky Derby and Kentucky Oaks, as well as racetrack and casino operations and a poker room in Miami Gardens, Fla.; racetrack, casino and video poker operations in New Orleans, La.; racetrack operations in Arlington Heights, Ill.; and a casino resort in Greenville, Miss. CDI also owns an account-wagering company, TwinSpires.com, and other advance-deposit wagering providers; the totalizator company, United Tote; Bluff Media, an Atlanta-based multimedia poker content, brand and publishing company; and a collection of racing-related telecommunications and data companies.