Churchill Downs Inc (CDI) announced that they have cancelled its plans to purchase Lady Luck Casino in Vicksburg, Mississippi from Eldorado Resorts Inc (ERI).
Earlier this year, CDI agreed to purchase Lady Luck Casino in Vicksburg, Mississippi and Presque Isle Downs & Casino in Erie, Pennsylvania for $178.9m.
However, having received a second request in May to address concerns raised by the Federal Trade Commission (FTC) in connection to the sale of Lady Luck Casino, CDI and EDI have agreed to take that venue out of the deal, according to their company's press release.
In the press release, CDI states that the “time and expense needed to reply” to the second request led to both parties having to amend the deal.
As part of the termination agreement, CDI will have to pay a $5m termination fee and a $100,000 fee to take over the Lady Luck Nemacolin management contract.
The changes to the deal still have to be approved by FTC, however, both companies intend “to work expeditiously” to complete a deal for the Presque Isle Downs & Casino by the end of the year.
In May, Churchill also signed a deal with SBTech to utilise the firms integrated technology platform in the US, following the supreme court's decision to fully repeal PASPA and legalise sports wagering in mid-May.