Potential Buyer For Caesars Southern Indiana Comes Just In The Nick Of Time

A new owner may soon be in place for Caesars Southern Indiana.

The Eastern Band of Cherokee Indians (EBCI) is considering the purchase of the property. This would represent the Tribe’s debut in the Indiana gambling industry.

The Tribal Council has sanctioned a few financial measures to examine the casino.

“Right now, we’re not buying the property,” stated Tom Wahnetah, Representative from Yellowhill. “This is simply part of our due diligence to confirm the property meets all claimed standards.”

Southern Indiana’s Caesars changing ownership

The EBCI isn’t purchasing the casino at this very moment, but the transaction could be finalized within a few weeks.

A signed letter of intent exists on both sides of the deal, indicating that Caesars is unable to consider other offers for the property for a minimum of 45 days. This demonstrates the seriousness of both parties regarding the sale.

So why the cautious maneuvering? Well, this is unfamiliar territory for the Tribe.

EBCI owns additional casinos, however, they are all situated on their tribal lands. They have never previously acquired an existing casino, thus they prefer to proceed cautiously.

After all, it is probably easier to build a casino on your own land because you have a blank slate to work with.

Wolftown Rep. Chelsea Saunooke believes that having a purchase procedure can maintain the Tribe’s readiness for future acquisitions.

This significant investment will essentially help us determine if it’s beneficial for the Tribe. I believe this is an effective vetting system, which I’ve been championing for some time. This system provides a reliable method to assess potential future investments for the Tribe.

Taking everything into account, EBCI will probably proceed with the purchase once the casino passes all necessary due diligence inspections.

This is beneficial for Caesars as they are running out of time to sell the casino.

A purchaser is needed for Horseshoe Hammond.

By the end of the year, Caesars must sell three of its casinos in Indiana.

This is due to a regulation established by the Indiana Gaming Commission. One of the stipulations Caesars had to consent to before their merger with Eldorado was approved by the commission during the summer.

Tropicana Evansville has already been purchased. Therefore, if the deal for Caesars Southern is successful, they will be nearly out of their predicament.

Twin River Holdings is acquiring Tropicana from Caesars.

The cost? A substantial $480 million.

The move of Caesars Southern to a brand-new building last December could also result in significant costs for EBCI. Given that the building is still new, everything is likely to be in excellent condition.

The Horseshoe Hammond is the third and last casino on the list of properties Caesars is selling.

The company is yet to find a buyer and their time is dwindling. The gaming commission has set a deadline of Dec. 31 for a deal to be in place.

As November draws to a close, it appears that Caesars might not meet the deadline if things don’t improve soon.

In essence, Caesars can’t sell the casino without a willing buyer. It’s likely that the gaming commission will agree to extend the deadline as long as they believe Caesars is making a sincere effort.

Indiana will see several new companies entering the market for the first time, as three casinos undergo ownership changes.