The first part of an approximate $24.8 million deal, down from the $30 million price tag when first announced in October, 2014, between Saratoga Harness Racing Inc. and Louisville-based Churchill Downs Inc.’s acquisition of a 25 percent stake in Saratoga Casino Holdings LLC, has been completed.
Saratoga Casino Black Hawk in Black Hawk, Colorado, Saratoga Casino and Raceway in Saratoga Springs, N.Y and a 50 percent interest in a joint venture to manage the Gideon Putnam Hotel and Resort in Saratoga Springs, N.Y by Delaware North Companies, are included in newly formed Saratoga Casino Holdings.
A $40 million hotel expansion, currently under construction and expected to open in the spring of the upcoming year, is included in Saratoga Casino and Raceway, according to the news release that stated, “The purchase price remains subject to final adjustments for SCH’s working capital related to the transferred New York operations,” as obtained from Louisville Business First. Due to the transfer of interest expected to take several more months, the deal will be split into two separate transactions, “Upon receipt of applicable approvals from the Colorado Division of Gaming, (Saratoga Harness Racing) will contribute its controlling interest in Saratoga Casino Black Hawk in Black Hawk, Colo., to (Saratoga Casino Holdings), and, “At such time, CDI will pay the remainder of the purchase price to SHRI of approximately $6.4 million for CDI’s pro-rata ownership of Colorado operations, subject to adjustments for working capital,” as per the agreement reached between Saratoga Harness and Churchill Downs Inc.
A five-year management contract signed last year between the two companies stipulated that Saratoga Casino and Raceway and Saratoga Casino Black Hawk would be managed by Churchill Downs.