NICHOLS – American Racing & Entertainment, LLC (ARE), owner and operator of Tioga Downs Casino Resort located in Nichols, New York and Vernon Downs Casino Hotel located in Vernon, New York, has announced that it has sold the real estate assets of Tioga Downs to Gaming and Leisure Properties, Inc. for $175 million.
GLPI is a real estate investment trust focused on passively owning real estate property that is leased to gaming operators. Following the closing of the transaction, ARE will lease the real estate assets of Tioga Downs from GLPI.
According to the press release, the transaction has no impact to Tioga Downs’ operations as ARE maintains full control of the operations. Additionally, there will be no changes to the customer experience or to Tioga Downs’ employees.
Jeff Gural, CEO of ARE, made the following statement:
“It’s business as usual at Tioga Downs, my team and I remain committed to our customers, employees and community. This transaction represents a form of financing to support the needs of the company. I will still be leading the management team and we will continue to provide the same level of customer service that Tioga Downs is known for.
We’ve always operated Tioga Downs as a family business and believe our customers like that. My family and I are committed to being active in this business for a long time with my son, Eric, playing a role besides me. My mother was from Binghamton and I have fond memories of visiting her family during the holidays. I thank the community for its continued support and as Tioga Downs grows in success, I plan to continue sharing such success with the community – as an example, we’ve recently increased our support to the local non-profits to $2 million a year.”
Innovation Capital, LLC acted as exclusive financial advisor to ARE. Duane Morris LLP acted as legal counsel to ARE. Citizens JMP Securities acted as financial advisor to GLPI. Goodwin Proctor LLP and Ballard Spahr LLP acted as legal counsel to GLPI.
About American Racing & Entertainment, LLC
Founded in 2005, American Racing is a leading regional casino operator in upstate New York. American Racing’s casino properties include Tioga Downs Casino Resort located in Nichols, NY, and Vernon Downs Casino Hotel located in Vernon, NY. Tioga Downs was established in 1974 as a quarter horse track known as Tioga Park. Today, Tioga Downs offers entertainment for everyone with amenities that include 895 slots, 29 table games, a 160-room hotel, 7 F&B venues, live harness racing, a FanDuel sports book, a championship golf course, and 13,000+ SF of indoor/outdoor event space. Vernon Downs first opened in 1953 and following its purchase by American Racing in 2006, now operates 512 video gaming machines, a 150-room hotel, 5 F&B venues, live harness racing, and an 8,600 SF event center.