Hard Rock International is expanding its portfolio of gaming properties with the addition of JACK Cincinnati Casino, the gaming and hospitality giant announced today
Hard Rock, together with real estate investment trust VICI Properties, has agreed to purchase one of Ohio’s premium gambling properties for the total amount of $745 million in cash from its current owner, Detroit-based company Jack Entertainment.
Under the terms of the deal, VICI Properties, the REIT that spun off from Las Vegas casino giant Caesars Entertainment Corp. in 2017, will buy 100% of the interest of an entity of the Cincinnati casino that owns the land and real estate for $558 million, while Hard Rock will pay $187 million for the operating assets of the gambling venue.
VICI Properties and Hard Rock will then enter a long-term leasing agreement for an initial rent of $42.75 million per year and an initial 15-year term.
JACK Cincinnati Casino features a 100,000-square-foot gaming floor with 1,800 slot machines and 100 table games. In addition, the property includes six dining facilities and 33,000 square feet of meeting space.
Deal Expected to Close in Late 2019
The purchase of JACK Cincinnati Casino will not mark Hard Rock’s first foray into Ohio’s gambling market. The company first entered the state in 2013 when the Hard Rock Rocksino Northfield Park opened doors. MGM Resorts International purchased the racino’s operating assets recently and rebranded it as MGM Northfield Park.
Hard Rock and VICI Properties said today that they expect to close the acquisition of JACK Cincinnati Casino in late 2019. The transaction is subject to regulatory approvals and customary closing conditions.
Hard Rock, which operates 245 hospitality properties across 75 countries, plans to add new facilities and property improvements to JACK Cincinnati’s existing offering. The new additions will be announced later this year by the property’s new owner.
Commenting on the new property in their extensive portfolio, Hard Rock Chairman and CEO Jim Allen said that they look forward to introducing their brand to the Cincinnati region. The executive went on to welcome JACK’s more than 1,000 employees to the Hard Rock family. The gaming and hospitality giant currently employs over 40,000 people around the globe.
Under the terms of the deal, Hard Rock and VICI Properties will also take over JACK Entertainment’s Turfway Park horse racing track in Florence, Kentucky.
Commenting on their decision to sell their Cincinnati casino and the racecourse, JACK Entertainment CEO Matt Cullen said that they are confident Hard Rock is “the right choice to take JACK Cincinnati Casino and Turfway Park to the next level of growth.”
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