Magic City Casino Sale Moves Forward Very first Adjust Of Owner
Following a two-month postponement and an improved pitch, for so-referred to as the largest casino deal in Florida background, the Florida Gaming Manage Commission on Wednesday, February eight, granted conditional approval for the sale of the gambling license from Miami-based mostly Magic City Casino to an Alabama-based Native American tribe, Poarch Band Creek Indians.
Completion of a multimillion- dollar obtain:
This resolution by Florida regulator will permit the PCI Gaming Authority, operated by the Poarch Band of Creek Indians, to finalize the multimillion-dollar obtain of a casino owned by the Havenick family and its West Flagler Associates to handle slot machines, poker and electronic casino games in Miami.
Nevertheless, the acquiring value was not unveiled, but lawyer John Lockwood, who represents the two sides of the buy agreement, aka West Flegler Associates and PCI Gaming, informed the commission that “it will be a cash deal.”
In this regard, and with data offered kind 2019 when PCI Gaming Authority purchased the Sands Casino Resort in Bethlehem, Pennsylvania for $one.3 billion, analysts estimate this obtain deal to be really worth almost $600 million.
1st adjust of casino ownership:
Since the Magic City Casino, formerly identified as the Flagler Puppy Track, has been owned and operated by the Havenick family for years, this will be the 1st substitute of ownership.
In this regard, Jay Dorris, president and CEO of Wind Creek Hospitality, the subsidiary of PCI Gaming that will supervise the growth undertaking, mentioned: “The new owner have ambitious plans.”
Casino upgrade and renovation plans:
The canine run that is element of the casino is now closed and its thirty-acres of house may possibly be the area for an opulent resort linked to the casino, which will look comparable to the company’s Caribbean properties and involve shopping centers and “experience-oriented attractions,” in accordance to Mr. Dorris.
In the interview he also stated: “We’re very pleased that the commission made their conditional approval. We’ll get the deal closed and we’re going to be very transparent and give them with no matter what information they need.
“This obtain is a fantastic possibility to broaden on a effective organization and intends to enhance the residence and make further investments.”
Magic City employee retention:
In the near long term, Mr. Dorris stated that “PCI Gaming intends to retain all Magic City staff, except for some senior executives who will keep with West Flagler Associates.”
He additional: “The firm will continue to manage its other gambling operations, which consist of a allow to operate summertime jai-alai and poker in a potential operation near Miami’s Edgewater neighnorhood and the Bonita Springs Poker Area close to Fort Myers.
“There will not be any quick alterations but I hope to get the company’s awards club for patrons going soon.”
The most critical determination produced by the Florida Gaming Management Commission:
This conditional approval by the Florida regulator is one of the most significant unanimous decisions by the Florida regulator, which is without having one particular member given that its former president John Mclver stepped down.
The commission was created by the Legislature and officially launched final 12 months with the primary task of regulating iGaming operations in Florida.
In December, the regulator stopped the home purchase deal amongst West Florida Associations and PCI Gaming and instructed the businesses to release a huge portion of 103 redacted pages from the 110-page application.
Then in January, PCI Gaming altered the proposal by changing one subsidiary, Wind Creek Miami LLC with Gretna Racing LLC, an entirely-owned subsidiary, as the lead entity to get 100% ownership and equity interest in the Magic City Casino license. The agreement involves a parimutuel working license, a card space license and a slot machine license for fiscal year 2022-23.
Even so, Gretna Racing, in contrast to Wind Creek Miami, already owns a parimutuel license for quarter horse racing and a card space, which can make it less difficult for it to get the slot license, which is at the moment owned by West Flagler Associates. As the slot license was sold in the middle of the year, Gretna Racing demands to pay $one million of the $2 million license fee, in accordance to Mr. Lockwood.
Request for conclusion of the contract inside thirty days:
The Florida regulator has requested that the sale agreement near inside of the following thirty days and that all last details be supplied to the regulator for final approval.
In this regard, Ross Marshman, standard counsel of the commission, said: “If it happens as described, it can be authorized. 
“But we have to really see evidence that what was described truly took location.”
Opponents of the deal:
So far, the only opposition to the deal is the Seminole Tribe, whose lawyer Marc Dunbar gave the commission a history lesson on the legal model behind the transfer and sale of parimutuel licenses.
He said: “Sale to Gretna Racing should not be permitted, not simply because the firm was not a excellent operator, but because the commission was establishing precedent that was not regulatory greatest practices.”
He also extra: “This is the most pricey gaming transaction – if you believe industry rumors – in Florida’s historical past. And so, I would encourage you to proceed with diligence… The Seminole Tribe is not opposed to West Flagler marketing its allow or any slot machine licensee marketing its allow. It’s just making certain it complies with the statutes.”
According to official paperwork, the contract for the obtain was signed on September 20, 2022, amongst West Flagler Associates and PCI Gaming Authority.
Acquire requires all “house cash”, all listings, all contracts, automobile and trailers licenses.
But that is not all as they also indicate that PCI will lease assets for potential casino upgrades.
In this regard, Mr. Dunbar mentioned: “The commission should have entry to people particulars, which had been not released with the application.”
When asked whether or not the commission did every little thing properly just before creating the selection, they answered that every little thing was according to the guidelines.