CASINO

Dover Downs, Twin River merger to face shareholder vote in March

TAGs: Dover Downs, merger, Twin River

Dover Downs, Twin Rivers merger to face shareholder vote in MarchThe wait for a potential merger between Dover Downs Gaming & Entertainment, Inc. and Twin Rivers Worldwide Holdings, Inc. could finally be coming to an end. Dover Downs, a Delaware-based company, had started discussing a potential merger with Rhode Island-based Twin River in July of last year and the two companies have now announced that Dover Downs shareholders will decide the fate of the merge in a special meeting next month.

If the merger goes through, Twin River, which is a privately-held company, would become a publicly traded company with a listing on either the NYSE or NASDAQ. That action has already received support by the U.S. Securities and Exchange Commission (SEC), which reportedly declared effective the registration statement offered by Twin River that discussed the merger.

The merger is only one of a few big mergers that have been seen in the casino industry in the U.S. in recent times. As competition increases, operators have turned to mergers in order to gain better market position and pool their resources to become more efficient.

The special meeting for Dover Downs shareholders will take place on March 26 at 8 PM Eastern Time. It will be held at the Dover Downs Hotel & Casino and all shareholders on the record as of the close of business from February 5 will be allowed to vote on the proposal. If that vote is successful, the merger will most likely be consummated shortly after the meeting.

Per the merger agreement entered last year, Dover Downs shareholders would exchange their stock for common stock in Twin River and the common stock would then represent 7.225% of the total equity of the new company. The Dover Downs property would be added to Twin River’s portfolio, giving it an additional 2,200 slot machines and numerous more table games.

Twin River operates two casinos in Rhode Island – Twin River Tiverton and Twin River Lincoln. Both locations launched sportsbooks late last year, becoming the first two in the state to offer the activity.

The company also owns properties in Mississippi and Colorado. It just recently completed a deal to purchase three casinos in Black Hawk, CO to add to its portfolio in the state, which also includes the Arapahoe Park horseracing facility and a number of off-track gambling operations. The three Black Hawk locations were owned by Affinity Gaming and include Golden Gates, Mardi Gras and Golden Gulch.

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