Churchill Downs Inc. Completes Presque Isle Purchase
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Photo: Coady Photography
Racing at Presque Isle Downs
Churchill Downs Inc.'s previously announced purchase of Presque Isle Downs in Erie, Penn. became official Jan. 11, giving CDI a foothold in the Keystone State's racing, gaming, online gaming, and sports wagering markets.
The purchase, announced in February 2018, saw CDI send Presque Isle owner Eldorado Resorts $178.9 million, subject to working capital and other purchase price adjustments, to purchase the track and casino.
The racino purchase follows the approval of the transaction by the Pennsylvania Gaming Control Board and the Pennsylvania State Horse Racing Commission. CDI said the transaction was funded with cash on hand and through the company's existing credit facility.
"Presque Isle will give us a foothold in Pennsylvania and the opportunity to participate in the sports betting and online gaming market throughout the state. This acquisition is projected to be immediately accretive to our shareholders," said CDI CEO Bill Carstanjen. "We are excited about welcoming Presque Isle and its employees to the Churchill family."
In a separate Jan. 11 announcement, CDI said a previously announced three-for-one split of the company's stock was approved by the board of directors. The additional shares will be distributed to shareholders Friday, Jan. 25 and the stock will begin trading at the split adjusted price Monday, Jan. 28.
In December, Presque Isle petitioned the gaming control board for a sports wagering license, that would allow on-site sports wagering as well as mobile and internet platforms to anyone in the state.