MTR Gaming Group, Inc. announced that it has entered into a definitive agreement with TLC Casino Enterprises, Inc. to sell Binion's Gambling Hall & Hotel in Las Vegas, NV for $32,000,000 in cash. TLC Casino Enterprises, Inc., which is controlled by Terry Caudill, also owns the Four Queens Hotel & Casino in Downtown Las Vegas. The transaction is subject to customary conditions, including the approval of the Nevada Gaming Commission and the City of Las Vegas, and purchase price adjustments based on changes in net working capital and certain capital expenditures between execution and closing.
While certain due diligence items remain outstanding, the closing is expected to take place promptly after the receipt of all required regulatory approvals, which the buyer must obtain within six months (but which the buyer may extend for up to six additional months) following the execution of the agreement. The buyer intends to retain the property's employees after the closing.
MTR purchased Binion's from an affiliate of Harrah's Entertainment, Inc. in March 2004 for $20 million and simultaneously purchased a parcel of land for $1.8 million that was previously ground leased. MTR has disputed a claim that Harrah's is entitled to a $5 million purchase price increase.
