Gulfport-based gambling manager Foundation Gaming Group announced on Monday that it would buy DiamondJacks Casino & Hotel in Vicksburg, Mississippi.
The casino first opened doors in 1993 and was initially operated under the Isle of Capri brand. The venue was the first of this kind in Vicksburg. In 2006, Legends Gaming purchased the gambling property. Later on, it declared bankruptcy not just once, but twice.
Foundation Gaming did not reveal how much it would pay for the casino. The acquisition deal is subject to regulatory approval and the Mississippi Gaming Commission is to vote on the sale on Thursday.
Les McMackin, Chief Operations & Marketing Officer for Foundation Gaming, said that the operator would borrow money from the casino’s current owners, in order to be able to complete the transaction. DiamondJacks’ current owners were creditors when Legends declared the second bankruptcy. They decided to keep the venue operational instead of closing it. Legends could only recover a small portion of the $300-million debt and the casino was at risk of being liquidated.
Mr. McMackin said that the gambling venue would continue operating as normal. It currently employs 300 people. Foundation Gaming is also considering a long-term plan for the future of DiamondJacks. Mr. McMackin promised that more would be revealed by the end of the week.
Furthermore, Foundation Gaming would keep on running the DiamondJacks gaming facility in Bossier City, Louisiana, which is a larger version of the Vicksburg venue.
Foundation Gaming is currently led by founders of Isle of Capri. The latter company owned the Bossier City DiamondJacks casino when it opened doors in 1994. Apart from the two DiamondJacks casinos, Foundation Gaming has also managed Bally’s Casino and Hotel and Resorts Casino and Hotel in Tunica County, Mississippi. However, this would be the first time that the gaming company has become owner of a casino.
Generally speaking, Vickburg is the third-largest gambling market within Mississippi’s borders. However, a number of gambling venues along the Mississippi River have closed doors in recent years due to a continuing drop in revenue. As previously reported, Isle of Capri Casino in Natchez is to be shuttered later this month. Thus, the gambling facilities along the river would be cut to 16.
