Twin River to acquire Mississippi Hard Rock for USD 250 million

John E. Taylor, Jr., chairman of Twin River Worldwide Holdings said the company has been seeking to diversify its revenue base to better withstand industry and market-place challenges. "Growing the business both organically and through acquisition solidifies our presence in Rhode Island and strengthens the company at an important time in our history as we brace for the eventual impact of Massachusetts casinos and racinos," he said in a statement issued by the company.

"With a near laser focus on creating a positive guest experience at Twin River through the addition of table games and attentiveness to customer service, we've brought the business to financial stability in just three short years. We're proud of the revenue we generate for the State and for the good paying jobs we provide, largely to Rhode Islanders. We now have the opportunity to broaden our focus to other markets which offer the opportunity for growth, and we see Mississippi in general and this property in particular as having exceptional value."

The Hard Rock Hotel & Casino, located at 777 Beach Boulevard, is owned and operated by Premier Entertainment Biloxi, a wholly owned subsidiary of Leucadia National Corporation.

The property features a casino with 1,342 slot machines, 51 tables and 4 poker tables. The 12-story AAA-rated four diamond hotel has 325 rooms and suites with a spa, fitness center, pool and private cabanas. 

In addition, the Hard Rock is completing a new 154-room hotel tower which is expected to be complete in February. The property offers five restaurants, including Ruth's Chris Steak House and the Hard Rock Cafe. 

“Growing the business both organically and through acquisition solidifies our presence in Rhode Island and strengthens the company at an important time in our history as we brace for the eventual impact of Massachusetts casinos and racinos,” John E. Taylor Jr., chairman of Twin River Worldwide Holdings, said in a statement.

In 2011, Massachusetts created licenses for three full casinos and one slots parlor to grab a share of the approximately $1 billion that Bay Staters are estimated to spend on gambling out of state. None have opened yet.

The future of Twin River is of concern to Rhode Island since gambling taxes are the third largest source of revenue for the state. In 2012, slot machines at Twin River generated $297.5 million for the state, about three-quarters of all tax revenues from gambling. That number is expected to grow with the addition of table games this year.

The deal to buy the Hard Rock Hotel & Casino is expected to be completed in June.

In a remarkable turnaround, Twin River has gone from emerging from Chapter 11 bankruptcy just three years ago to purportedly securing the financing to buy a major tourist destination on Biloxi’s waterfront.

In acquiring the Mississippi business, Twin River would take over a much smaller gambling venue, but one boasting the Hard Rock brand name, along with one of its popular restaurants, a high-end Ruth’s Chris Steakhouse, a 12-story hotel and another hotel tower due to open in February. Twin River, a former greyhound race track, has neither a hotel nor a big-name restaurant franchise.

“This is a premier property within the Biloxi casino market with incredibly strong name recognition thanks to the iconic status of the Hard Rock brand,” Taylor said. Twin River said its corporate headquarters would remain in Rhode Island and that the Lincoln venue will remain its “flagship casino.”

Twin River, with 4,538 video slots, began to add table games in June after voters passed the requisite referendum. It now has 80 blackjack, roulette and other table games. The company employs 1,500. Hard Rock Biloxi has 1,342 video slots and 51 table games. It employs 1,017.

This is Twin River’s first acquisition, Doyle confirmed. She did not close the door on future acquisitions.