Saratoga Harness Racing Inc. and Churchill
Downs Inc., operators of Saratoga Casino and
Raceway, signed a definitive purchase agreement
wherein the latter will purchase a 25
percent membership interest in Saratoga Casino
Holdings LLC (SCH) for approximately $30.6
million, to be paid in cash.
Negotiations for the pact were announced
in August. The signing pushes things closer to
finalization. Both the purchase and management
contracts will become effective as soon as CDI
and SHRI obtain necessary licenses and approvals
in New York and Colorado. The parties anticipate
approval in the second-quarter of 2015.
SCH is a newly formed entity which will include
the following assets: Saratoga Casino and
Raceway in Saratoga Springs, N.Y.; SHRI’s controlling
interest in Saratoga Casino Black Hawk
in Black Hawk, Colo.; its 50 percent interest in
a joint venture with Delaware North Companies
to manage the Gideon Putnam Hotel and Resort in Saratoga Springs; its interest in the proposed
Capital View Casino & Resort in East Greenbush;
and SHRI’s interest in a joint venture with Rush
Street Gaming to build the proposed Hudson
Valley Casino & Resort in Newburgh.
The purchase price remains subject to adjustments
for SCH’s working capital and debt at the
time of closing.
SHRI and CDI also signed a definitive fiveyear
management contract wherein CDI will
manage Saratoga Casino and Raceway and
Saratoga Casino Black Hawk. Should CDI and
SHRI be successful in their joint bid to build
Capital View Casino & Resort — among the
proposed sites for new casinos in New York state
— CDI will also manage that facility.
A binding term sheet for such management
agreement was included with the New York
casino license application for Capital View
Casino & Resort, submitted by CDI and SHRI
on June 30.