Chickasaw Nation Withdraws $125 Million Bid to Buy Two Non-Indian Casinos
The Chickasaw Nation’s entertainment and gaming arm, Global Gaming Solutions, has retracted its $125 million offer made August 1 to buy two non-Indian casinos in Bossier City, Louisiana and Vicksburg, Mississippi.
The tribe told The Shreveport Times that business has suffered at the DiamondJacks Casino & Resort in Bossier City and its sister property since the owner filed for Chapter 11 bankruptcy reorganization in July. The Bossier City location, the larger of the two, experienced an 11.5 percent loss in December revenues from the previous year, and a recent report by casino consultant Randall Fine reveals the casinos’ market shares are shrinking. In addition, the planned $197 million Margaritaville Casino Resort on Bossier City’s riverfront threatens the local DiamondJacks, which Fine described as “extremely outdated” and in “woeful” condition.
“To put it bluntly, the debtors’ business today is but a shell of what existed only a few short months ago, is not the business that Global Gaming agreed to purchase and cannot generate the financial performance necessary to allow Global Gaming to comply with the covenants and requirements of the acquisition financing,” a lawyer for Global Gaming Solutions wrote in court documents filed January 25.
But a spokeswoman for Legends Gaming, the Chicago-based owner of the DiamondJacks casinos, contends her company rescinded the proposal. “Legends Gaming LLC filed a motion to withdraw the reorganization plan regarding the sale of two DiamondJacks Casinos owned by the company. Global Gaming Solutions LLC was unaware of Legends’ plan until the motion was filed,” Kym Koch Thompson told The Shreveport Times.
Get the full report: The Shreveport Times
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