BOSSIER CITY, LA (KSLA) - The sale of the Margaritaville Resort Casino in Bossier City announced more than a year ago could be on the rocks, according to documents filed Wednesday morning in federal court by the company that owns the rights to the Jimmy Buffett-founded brand.
| Margaritaville Casino and Restaurant Biloxi | |
|---|---|
| Location | Biloxi, Mississippi |
| Address | 160 5th Street |
| Opening date | May 22, 2012 |
| Closing date | September 15, 2014 |
| Theme | Margaritaville |
| Total gaming space | 21,000 sq ft (2,000 m2) |
| Notable restaurants | Margaritaville |
| Casino type | Land-based |
| Owner | MVB Holdings |
The Margaritaville Casino and Restaurant is a closed casino and restaurant in Biloxi, Mississippi in the United States. The 68,000-square-foot (6,300 m2) property is in the 'Back Bay' area of Biloxi.[1] It opened on May 22, 2012 and closed on September 15, 2014. Its brand was licensed from Jimmy Buffett's Margaritaville.
History[edit]
Jimmy Buffett, a native of nearby Pascagoula, tried to bring the Margaritaville brand to Biloxi as early as 2000, when discussions were held on building a hotel and amphitheater on 12 acres of beachfront land between the Casino Magic and Grand Casino.[2]
Following Hurricane Katrina, Grand Casinos founder Tom Brosig came out of retirement and began looking for land to develop a casino, citing a desire to help rebuild the community. He settled on the Back Bay site where the Margaritaville Casino would ultimately open. According to Brosig, he nearly reached an agreement to use the Margaritaville brand in 2006.[3]
Buffett instead joined with Harrah's Entertainment in 2007 to begin construction on the $700-million Margaritaville Casino Resort on the site of the Casino Magic and Grand Casino,[4] which had both been destroyed by Katrina.[5] Buffett was partly motivated by a desire to help the region's economic recovery from Katrina.[4] Construction was suspended, however, in 2008, due to the global financial crisis and Harrah's near-bankruptcy after being taken private.[6]
Meanwhile, Brosig continued his efforts on the Back Bay site, but had difficulty raising financing due to the financial crisis and the Deepwater Horizon oil spill. He was eventually able to assemble a total investment of $63 million, with '20 or 22' equity investors. A 20-year agreement was reached for the Margaritaville brand.[3]
Buffett and Brosig unveiled their plans in 2011, describing a 68,000 sq ft (6,300 m2), $48-million Margaritaville Casino at the former East Harrison County Industrial Park, without the involvement of Harrah's (now Caesars Entertainment).[7] Groundbreaking was expected in April 2011 with a construction time of 9 months.[8]
In March 2011, plans for the location won fast track approval from the city of Biloxi. On April 7, Buffett appeared before the Mississippi Gaming Commission and explained why the casino should be approved. Commissioners listened and then approved the project.[9]
On May 22, 2012, the Margaritaville Casino & Restaurant opened to the public, featuring 820 slot machines, 18 table games, two levels of dining decks, and a marina with waterside entertainment, food, and drinks.[10]
In June 2013, Margaritaville Biloxi became the first casino in Mississippi gaming history to offer outdoor gaming which includes three blackjack tables at LandShark Landing and Marina.
In December 2013, Doug Shipley, President & CEO, announced that Margaritaville Biloxi would break ground on a new hotel facility in the spring with anticipated completion a year later. The new hotel would feature 250 rooms, including 170 deluxe guest rooms and 80 two- and three-bedroom suites. In addition, they would offer timeshare units through a major international partner.
In July 2014, the casino announced that it would likely close by September, because of an unresolved dispute with the landlord that was blocking the financing needed to build the hotel.[11] On September 15, 2014, Margaritaville Biloxi officially closed.[12]
The property was listed for sale in 2015 with an asking price of $18 million.[13]
In 2019, a new group of developers filed plans to reopen the casino as the Biloxi House at Point Cadet. Their $200-million project would add a 300-room hotel and various other amenities to the site.[14]
References[edit]
- ^'Mississippi regulators certify Jimmy Buffet's casino'. Las Vegas Sun. AP. May 17, 2012. Retrieved 2012-05-17.
- ^Palermo, Dave (July 30, 2000). 'Glut quiets casino boom: Plans begin to gather dust'. The Sun Herald. Gulfport, MS: via NewsBank.(subscription required)
- ^ ab'Q&A with Tom Brosig'. Global Gaming Business. July 27, 2012. Archived from the original on January 24, 2013. Retrieved July 27, 2012.
- ^ abPerez, Mary (August 14, 2007). 'Margaritaville breaks ground'. The Sun Herald. Gulfport, MS: via NewsBank. Retrieved 2012-05-23.(subscription required)
- ^Mohr, Holbrook (December 8, 2005). 'Gulf casinos end worker aid'. San Diego Union-Tribune. AP. Retrieved 2012-05-23.
- ^Burnham, Maria (June 26, 2010). 'Hopes fade for quick restart on Harrah's casino'. The Tribune. Greeley, CO. AP. Retrieved 2012-05-23.[permanent dead link]
- ^Perez, Mary (January 13, 2011). 'New Margaritaville in the works'. The Sun Herald. Gulfport, MS: via NewsBank. Retrieved 2012-05-23.(subscription required)
- ^'Casino on hold at least a month'Archived 2011-03-22 at the Wayback Machine, Sun Herald, March 22, 2011
- ^Buffett gets okay to open Margaritaville in Biloxi, retrieved 2011-04-07
- ^Perez, Mary (May 22, 2012). 'Margaritaville Biloxi opens with a concert heard 'round the country'. The Sun Herald. Gulfport, MS. Archived from the original on May 25, 2012. Retrieved 2012-05-23.
- ^Mary Perez (July 21, 2014). 'Margaritaville Casino to close'. The Sun Herald. Biloxi, MS. Archived from the original on July 23, 2014. Retrieved 2014-07-21.
- ^Mary Perez (September 16, 2014). 'Margaritaville Casino Biloxi closes Monday, files for bankruptcy Tuesday'. The Sun Herald. Biloxi, MS. Archived from the original on September 18, 2014. Retrieved 2014-09-18.
- ^Mary Perez (October 7, 2015). 'Piece of paradise: Former Margaritaville Casino for sale'. The Sun Herald. Biloxi, MS. Retrieved 2019-03-27.
- ^Mary Perez (March 22, 2019). ''Nothing's going to be the same.' A $200M plan for former Margaritaville site in East Biloxi'. The Sun Herald. Biloxi, MS. Retrieved 2019-03-27.
Coordinates: 30°24′06″N88°51′35″W / 30.40167°N 88.85972°W
WYOMISSING, Pa.--(BUSINESS WIRE)--Penn National Gaming, Inc. (PENN:Nasdaq) (“Penn National” or the “Company”) announced today that it completed the purchase of the operations of Margaritaville Resort Casino in Bossier City, Louisiana (“Margaritaville”), for total consideration of $115 million. The transaction was financed with incremental borrowings under the Company’s revolving credit facility with the purchase price representing a multiple of approximately 5.0x expected trailing twelve months adjusted earnings before interest, taxes, depreciation, amortization, and management fee for the period ended December 31, 2018. Penn National expects the purchase multiple will be reduced to below 4.5x based on expected operating synergies and cost savings.
Simultaneous with the closing of the transaction, Penn National entered into a triple net lease agreement with VICI Properties Inc. (NYSE:VICI) (“VICI”) for the Margaritaville facility. The lease has an initial annual rent of approximately $23 million and an initial term of 15 years, with four 5-year renewal options. The rent coverage ratio in the first year after closing is expected to be greater than 2.0x, and the Tenant’s obligations under the lease are guaranteed by Penn National.
Timothy J. Wilmott, Penn National’s Chief Executive Officer, stated, “Margaritaville, Bossier City’s newest casino resort, is an attractive addition to our regional gaming platform. This acquisition is in line with our efforts to enhance shareholder value as it is immediately accretive to our free cash flow, further diversifies our revenue and operating base and offers a well-defined path to the realization of synergies that are expected to lower the purchase multiple. Margaritaville is one of the leading casino resorts in Bossier City, and we expect that our proven integration and operating strategies will help grow operating margins as well as free cash flow contributions from the property. We are excited to welcome Margaritaville employees to Penn National.”
Built in 2013, Margaritaville Resort Casino is the premier venue for gaming, lodging, dining and entertainment experiences in Northern Louisiana. The property features 26,500 square feet of casino space, 395 hotel rooms, an island-style escape theme, 6 restaurants and food and beverage outlets, a 15,000 square foot 1,000-seat theater and 9,500 square feet of meeting space.
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities and video gaming terminal operations with a focus on slot machine entertainment. Reflecting the recent completion of the Pinnacle Entertainment transaction the Company now operates 41 facilities in 18 jurisdictions. In total, Penn National facilities feature over 50,200 gaming machines, 1,250 table games and approximately 9,400 hotel rooms. The Company also offers social online gaming through its Penn Interactive Ventures division and has leading customer loyalty programs with over five million active customers.
Who Owns Margaritaville Casino In Bossier City
Forward-Looking Statements
Margaritaville Bossier Casino
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected impact of the acquisition of Margaritaville on the Company’s operations. These statements can be identified by the use of forward looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “seeks,” “may,” “will,” “should” or “anticipates” or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business, there can be no assurance that actual results will not differ materially from our expectations. Meaningful factors that could cause actual results to differ from expectations include, but are not limited to, risks related to the acquisition of the Margaritaville operations by the Company and the integration of the business to be acquired; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the transaction; the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or issues arising from, the integration of the companies; and other factors as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the United States Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.