Churchill Downs, the company that hosts the annual Kentucky Derby, has expanded further into the US gambling market by purchasing a casino. The group paid around $138 million for Harlow’s Casino Resort & Hotel in Greenville, Mississippi, marking its first step into the Magnolia State.
The casino is currently owned by a number of parties, including the private investor Jess Ravich, as well as Oak Hill Investors and Levine Leichtman Capital Partners. It sits on the banks of the Mississippi River and was opened in 2007, with an initial investment of $70 million. The 1930’s themed resort brought in $50.4 million in revenue last year and boasts a casino floor consisting of nearly 850 slot machines, 23 table games and a poker room.
Churchill Downs is stepping up on its gambling operations expansion policy, both online and off. Last year, the group bought Youbet.com betting site to the tune of $127 million, and owns its flagship race track in Louisville. The group also owns the Fair Grounds Race Course and Slots, Arlington Park and Calder Casino and Race Course.
“The key determinants of our decision to acquire Harlow’s were further strategic business and geographic diversification, the appeal of Mississippi as a business and gaming location, an attractive valuation, multiple paths to future growth and the performance of Harlow’s outstanding team of approximately 400 employees who we look forward to welcoming to the Churchill Downs family” said the President of Churchill Downs, Robert Evans.
“With the acquisition of Harlow’s, we continue our diversification strategy across our racing, gaming and online business units,” he added.
The move comes at a time that the pari-mutuel market gambling market in the United States has dropped more than $2 billion in the past two years, and wagering on US races in 2009 off around 16% compared to 2007.
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