Delaware North announced it will sell Jumer’s Casino & Hotel in Rock Island, Illinois to Twin River Worldwide Holdings Inc. for $120 million in an all-cash deal, with closing expected in second quarter 2021 pending regulatory approvals. Delaware North President Brian Hansberry said, “We’re very proud of our ownership and operation of Jumer’s and what Delaware North has done to contribute to and be an important part of the community here. We look forward to working with Twin River toward a smooth transition for our employees and community stakeholders over the next several months. We have every confidence that Twin River will use its experience and resources to ensure Jumer’s remains a top regional gaming and resort destination.”
Twin River Chief Executive Officer George Papanier said the Illinois transaction helps “expand our regional presence” and “geographic reach.” He said Illinois was “another attractive market” and allows the company to “capitalize on potentially lucrative sports betting opportunities. We have demonstrated an ability to integrate and operate acquired casino assets. We believe this experience will prove valuable as we look to further enhance Jumer’s financial performance.”
Jumer’s opened in 1992 as one of Illinois’ first riverboat casinos. The current venue was built in 2008. The Jumer family sold it to Delaware North in 2011. Since 2016, Delaware North has invested more than $14 million in the property, which offers a 40,000-square-foot casino floor with more than 870 slot machines and 25 table games, live poker room, high-limit slot area and VIP lounge, plus a 205-room hotel with a pool and fitness center, events center, sports bar, nightclub and four restaurants. Pre-Covid-19, it employed more than 400 workers.
According to Illinois Gaming Control Board figures, Jumer’s posted $66 million in gaming revenue in 2019, the second-lowest total among Illinois’ 10 riverboats.
Hansberry said Delaware North is focused on several new casino projects, including operating the proposed Southland Live Casino in Calumet City, Illinois and consulting on the Catawba Indian Nation’s Kings Mountain, North Carolina casino project.
Delaware North operates two regional gaming and entertainment destinations West Virginia, one in Arkansas, three in New York, one in Ohio and one in Australia; two card rooms in Florida; and an OTB network in Arizona. It also owns the Illinois gaming route Gaming & Entertainment Management LLC.
Earlier this year, Twin River acquired Casino Vicksburg in Mississippi and Casino KC (formerly Isle of Capri Casino) in Kansas City, Missouri, from Caesars Entertainments’ predecessor, Eldorado Resorts, for $230 million.
Twin River also has other pending Caesars transactions: purchasing Bally’s Atlantic City for $25 million, and Eldorado Shreveport in Louisiana and the operations of MontBleu Resort Casino in Lake Tahoe, Nevada for a combined $155 million. When the deals are finalized, Twin River will operate 13 casinos in Rhode Island, Mississippi, Delaware, Missouri, New Jersey, Louisiana, Nevada and Colorado.
Truist Securities Gaming Analyst Barry Jonas said despite the uncertainty of Covid-19, Twin River management is executing on a stated acquisition growth strategy. “We think Jumer’s is well-suited for Twin River’s strategy, with a strong opportunity to drive profitable market share via targeted high return on investment marketing spend. We think the burgeoning sports betting opportunity likely played a key role during the process, with Illinois online sports betting recently opening up.”
Meanwhile, Twin River raised $125 million in new debt, which could be used for its pending casino purchases or for new ones.
The multi-state casino company said it expects to report as much as $130 million in revenues for its third quarter; with cash flow between $30 million and $40 million.
Twin River recently acquired two casinos from El Dorado Resorts (now Caesars Entertainment) and now has more than $360 million in liquidity.
Twin River announced last week that it was buying Jumer’s Casino & Hotel in Rock Island, Illinois for $120 million in cash. Pending are the purchase from Caesars of Bally’s Atlantic City for $25 million and the Eldorado Shreveport and the operations of MontBleu Resort Casino in Lake Tahoe for a combined $155 million.
Several months ago Twin River acquired Casino Vicksburg and Casino KC from Eldorado for a combined $230 million.
That left the company with $972 million in long term debt. When the just raised $125 million is included, it will have $400 million of debt due in 2027.
The company is reportedly anticipating $500 million in annual cash flow and is looking at more acquisitions.
