Mountaineer Purchase Approved by State Commission
The West Virginia Lottery Commission approved Sept. 25 the purchase of Mountaineer Casino, Racetrack and Resort by Colorado-based international casino company Century Casinos.
Mountaineer is among three properties Century Casinos is buying from the racetrack's parent company Eldorado Resorts. Century Casinos entered into an agreement in June to acquire Moutaineer, and the Isle Casino Cape Girardeau and Lady Luck Caruthersville, which are both in Missouri. The entire purchase is valued at approximately $107 million and also is subject to approval by the Missouri Gaming Commission. The acquisitions are expected to close in early 2020.
"We are very excited to be expanding into West Virginia," said Erwin Haitzmann and Peter Hoetzinger, co-CEOs of Century Casinos in a statement. "Mountaineer is a great addition to our portfolio and will be our third racetrack and casino property. We look forward to working with the staff and community to continue the current success at Mountaineer into the future."
In a June conference call with analysts and investors, Haitzmann said the company was comfortable with this acquisition despite the recent growth in competition from Ohio and an expansion of gaming in Pennsylvania.
"Mountaineer has found a very specific market segment in that market," Haitzmann said of the racetrack property that features a 357-room hotel, approximately 1,486 slot machines, 36 table games, a poker room, and five dining venues. "It could be described as a resort destination for the mid-market, rather than the higher-end Vegas casinos."
At the State Lottery Commission meeting, Haitzmann said he sees potential for Mountaineer to grow.
"Mountaineer used to be larger and with all the real estate available, we see an upside and the possibility to grow further," he told the West Virginia MetroNews Network. "Mountaineer is profitable now, you may say, in spite of the competition. I think it's a healthy competition for the customers and think we're well-equipped to get our fair share of the market."
Century Casinos operates other racinos in Canada: Century Downs Racetrack and Casino north of Calgary, Alberta, which runs 100 days of live Thoroughbred, Standardbred, and Quarter Horse racing; and, Century Mile Racetrack and Casino that opened in April in South Edmonton, Alberta. The company also operates casinos in Colorado, Alberta, England, and owns interests in casinos in Poland and Argentina.