Jack Entertainment Announces the Sale of Two Properties
Jack Entertainment has signed an agreement to sell Jack Cleveland Casino along with Jack Thistledown Racino to real estate investment company, VICI Properties. The properties will be sold for an estimated USD843 million. Jack Entertainment made the announcement on Monday, and specified that while VICI will become the new owners of the properties, Jack Entertainment does plan to lease the properties back in a triple-net leased fee agreement. It will also maintain its role as casino operator and will also own all property inside the casinos.
Chief executive officer of Jack Entertainment, Mark Dunkeson, said in a statement that they are thrilled to still be able to control operations at Jack Cleveland and Jack Thistledown even if they are no longer the legal owners.
The Cleveland casino has approximately 96,000 square feet worth of gaming space and is connected to the Ritz-Carlton and Renaissance hotels located in downtown Cleveland. The Thistledown Racino is situated in North Randall, Ohio. That’s about 10 miles southeast of downtown Cleveland.
Jack Entertainment Future Plans & What Happens Next
Dunkeson further spoke of investment plans into both casinos, which will add onto the US$700 million already spent on both properties since they opened back in 2012. He believes that the capital they plan to invest into these casinos will have a lasting impact on the city and county at large. The Jack Entertainment rewards programs will however remain unchanged for now.
The process of selling both properties is not over yet as the sale must still be approved by regulators. The company hopes to finalize the procedure early next year.