CHDN continues to diversify its portfolio, with gaming accounting for just over 40 percent of its holdings, while online gambling and racing continue to grow. The company’s gaming activities recently got a boost with the recently signed purchase agreement for a 25 percent interest in Saratoga Casino Holdings LLC, a new asset spinoff from Saratoga Harness Racing Inc., for .6 million. That gives CHDN minority membership interest in Saratoga Casino and Raceway in New York, Saratoga Casino Black Hawk in Colorado and in SHRI’s 50 percent joint venture with Delaware North Companies to manage the Gideon Putnam Hotel and Resort, also in Saratoga Springs, New York. This summer CHDN announced a 5-year management contract with SHRI to manage the Saratoga racino and the Blackhawk casino pending gaming licensure by CHDN in Colorado and New York.
The Saratoga racino features 1,700 slots and electronic table games, and the Black Hawk casino has 585 slots plus 11 table games. In fiscal 2013, Saratoga generated $169 million in gaming revenue.
SCH also includes SHRI’s share in the companies’ jointly-proposed, with CHDN, Capital View Casino & Resort in East Greenbush, New York, plus SHRI’s joint venture with Rush Street Gaming for the proposed Hudson Valley Casino & Resort in Newburgh, New York. Both are candidates for the four gaming licenses to be issued in upstate New York. The Capital View project has a good chance to win the license, based on CHDN’s balance sheet, its growing regional gaming experience and the strength of its iconic Kentucky Derby brand. Hudson Valley faces more challenging competition from CZR, Mohegan Sun, PENN/Cordish and Genting, which submitted two separate proposals in the region.
Analysts believe CHDN sought a physical presence in key regional growth markets to be ready when New York and/or Colorado legalize internet gambling. CHDN has been investing heavily in its technology infrastructure and virtual gaming platform, including TwinSpires.com and Bluff Media. The SCH deal also enhances CHDN’s position for pending expansion in upstate New York. Capital View Casino, located east of Albany, is one of five bids for the Capital Region (Region 2) license; SHRI’s Hudson Valley Casino with Rush Street Gaming is one of nine for the Catskills/Hudson Valley (Region 1) license.
