JACK Entertainment LLC announced that certain of its affiliates have entered into an agreement with VICI Properties, a real estate investment trust, to sell the membership interests of a subsidiary that owns the land and real estate assets of JACK Cleveland Casino and JACK Thistledown Racino for approximately $843 million, pending regulatory approval. VICI will simultaneously enter into a favorable triple-net leased fee agreement with JACK Entertainment who will continue to invest in and operate JACK Cleveland Casino and JACK Thistledown Racino under the same brand and identity the community has known since 2016.
JACK Entertainment has invested more than $700 million into JACK Cleveland Casino and JACK Thistledown Racino since the properties opened in 2012. The company will continue to make further investments to enhance the overall guest experience, which will be announced in more detail at a later date. Going forward, Dan Gilbert, Matt Cullen, chairman JACK Entertainment, and Mark Dunkeson, CEO JACK Entertainment, along with the existing JACK management team, will continue to lead the organization and will be the primary investors in the ownership group associated with the Cleveland properties.
“JACK Entertainment looks forward to continuing to operate JACK Cleveland Casino and JACK Thistledown Racino,” said Dunkeson. “The combined efforts of our gaming properties together with the other Cleveland assets operated by our sister companies including the Cavs, Avenue Shops at Tower City and the May Company Building, have created a strong connection to the city and allows us to remain heavily committed to the Cleveland area. We will continue to invest significant capital into these properties which will have a lasting positive impact on the city and Cuyahoga County.
The transaction is expected to be finalized sometime in early 2020, subject to certain regulatory approvals.