Twin River to merge with Dover Downs and become a PLC

Twin River Worldwide Holdings is to merge with fellow operator Dover Downs Gaming & Entertainment.

Twin River is based in Rhode Island, which legalised sports betting last month, where it operates and owns two casinos, adding to its casino in Mississippi, and a horse racetrack in Colorado.

Dover Downs owns the Dover Downs Hotel and Casino in Delaware, which consists of around 2,200 slots and 500 luxury rooms, making it the largest hotel in the state, as well as offering table games and sports betting.

The definitive merger agreement will see Twin River become a publicly-traded company, and Dover Downs stockholders exchange their stock for Twin River common shares.

Once complete, Dover Downs is set to represent about 7% of the newly-combined businesses, which will be registered with the US Securities and Exchange Commission, and listed on either the NASDAQ or New York Stock Exchange.

Twin River Executive Chairman John E. Taylor Jr. said: “Dover Downs and its team are experienced in not only brick and mortar casino operations, but in sports betting, which we think will be helpful as we introduce that amenity at our properties, and in the online gaming sector which continues to evolve nationwide.”

The merger allows for Twin River to gain experience in the new sports betting vertical, as well as expanding into Delaware, another state which has legalised sports betting.

Taylor added: “We’ve been focused on growing the overall business for some time now as a means to create greater shareholder value, expand our geographic footprint to achieve financial economies and strengthen our financial position. This merger should well position us to achieve all three objectives in a context in which existing shareholders of Twin River who desire it could obtain liquidity.”

President and CEO of Dover Downs, Denis McGlynn, said: “Becoming part of Twin River is transformational for us. We believe this transaction will help us grow our business, invest in our people and our facilities and compete more effectively given changes in gaming on the horizon. We expect to see many positive benefits for the State, the Delaware Lottery and our employees and stockholders.”

Dover Downs has struggled of late; the company made a net loss of $1m in 2017, as a result of what the company refers to as an “unfair and outdated gaming revenue sharing formula.”

Source