Twin River Worldwide Holdings has made another deal, this time in the state of Illinois. Twin River has agreed to purchase Jumer’s Casino and Hotel in Rock Island, IL for a price of $120 million in cash.
Jumer’s Casino is one of the many properties in Illinois that had to shut down during the COVID-19 pandemic, but has since reopened under strict health and safety protocols. The casino is one of the most popular tourist attractions in the Northwest portion of the state.
This deal is expected to be completed in the second quarter of 2021, and Twin River will then take over operations at the property. The casino is more than 40,000 square feet and there are close to 900 slot machines on the premises.
Along with being a massive casino, the property also features a hotel that has more than 200 rooms. It is likely that Twin River will be looking to make some improvements to the facility when this deal goes through.
Twin River will be using a number of different revenue sources to fund this project, including revenue from other operations. This company has not slowed down despite the ongoing pandemic, and Twin River has been able to expand into other states in recent months.
After this deal goes through, Twin River will be operating a total of 13 properties in nine states throughout the country. The company is based out of Rhode Island, and it currently operates both of the retail casinos in its home state.
Most experts would agree that this is a terrific deal for Twin River, and it will lead to a huge boost for the expanding company. The gaming industry should be used to this sort of thing though, as Twin River has been able to land a number of great deals over the last few months.
The company was also able to purchase three gaming properties this summer for a total of $180 million. One of these properties is Bally’s in Atlantic City, New Jersey, and it will become an important part of Twin River’s future.
Illinois Provides Growing Market
The two casinos in Rhode Island, Twin River and Tiverton, currently produce the most revenue for Twin Rivers Holdings, but that could soon change. The company is hoping that exploring other markets will not only bring in new revenue, but will also take away some risk that comes with operating in just one state.
One of the biggest reasons for expansion is that Twin River is looking to break into the sports betting industry. The sports betting market in Rhode Island is incredibly small, but that isn’t the case in Illinois.
Illinois officially launched sports betting on March 9, and the mobile portion of the industry began earlier this summer. There are now five mobile sportsbooks up and running in the “Land of Lincoln,” with more on the way.
Jumer’s Casino has not yet received a sports betting license in Illinois, but Twin River will likely pursue a license almost immediately. Twin River can then partner with a sports betting operator to begin mobile operations as well, and there will be plenty of companies lining up to break into the Illinois market.
Illinois has already seen tremendous growth in the sports betting industry, despite some interesting regulations and high licensing fees. Governor JB Pritzker has loosened some of these requirements in an effort to help the state recover from the pandemic.
Twin River will also be offering sports betting in both New Jersey and Colorado, and these two markets are taking off as well. New Jersey has emerged as the leading market in the industry, and Colorado is expected to post massive numbers in 2021.