RENO, Nev. and LAS VEGAS, Dec. 24, 2020 /PRNewswire/ -- Caesars Entertainment, Inc. (NASDAQ: CZR) ("Caesars" or "CZR") today announced a definitive agreement to sell the operations of Caesars Southern Indiana to the Eastern Band of Cherokee Indians ("EBCI") for $250 million, subject to customary purchase price adjustments. In addition, at the closing of the transaction, EBCI will enter into a new lease with year one annual rent payments of $32.5 million with VICI Properties Inc. (NYSE: VICI) ("VICI Properties"), who maintains ownership of the real estate of the property. As a result of this transaction, Caesars annual payments to VICI Properties under the Regional Master Lease will decline by $32.5 million upon closing of the transaction.
Additionally, effective as of the closing of the transaction, Caesars and the Eastern Band of Cherokee Indians will extend their existing relationship by entering into a long-term agreement for the continued use of the Caesars brand and Caesars Rewards loyalty program at Caesars Southern Indiana.
"Expanding our relationship with the Eastern Band of Cherokee Indians is an exciting event for Caesars Entertainment," said Tom Reeg, CEO of Caesars Entertainment, Inc. "Since our partnership began back in 1996, we have admired their growth and the success of their properties. We look forward to increasing our relationship by extending the Caesars brand and Caesars Rewards loyalty program to them at Caesars Southern Indiana."
"The purchase of Caesars Southern Indiana operating company marks the beginning of an exciting new future for the Eastern Band of Cherokee Indians," said Richard Sneed, Principal Chief Eastern Band of Cherokee Indians. "We are pleased to build upon our long-standing partnership with Caesars as we look to advance our interests in commercial gaming in the coming years."
The transaction is expected to close in the third quarter of 2021 and is subject to regulatory approvals and other customary closing conditions.
J.P. Morgan and Latham & Watkins LLP represented Caesars Entertainment on the transaction. Innovation Capital LLC and Brownstein Hyatt Farber Schreck represented the Eastern Band of Cherokee Indians.
About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest casino-entertainment company in the U.S. and one of the world's most diversified casino-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment's resorts operate primarily under the Caesars®, Harrah's®, Horseshoe® and Eldorado® brand names. Caesars Entertainment offers diversified amenities and one-of-a-kind destinations, with a focus on building loyalty and value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars Entertainment is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. For more information, please visit www.caesars.com/corporate.