Wednesday, Sept. 2, 1998 | 11:24 a.m.
Jack Binion's Horseshoe Gaming LLC said today it's buying Empress Entertainment, the largest casino operator in the Chicago area.
The $600 million purchase, which includes assumption of Empress debt, marks Binion's entrance into the nation's fourth-largest gambling market after Las Vegas, Atlantic City and Mississippi.
Closely held Empress, based in Joliet, Ill., owns riverboat casinos in Joliet, and in Hammond, Ind. It and Harrah's Entertainment are the only casino operators in the Chicago area with two, rather than one, casinos. The market has suffered from over capacity and high gaming taxes in Illinois.
Las Vegas-based Horseshoe, closely held by Binion, owns casinos in Bossier City, La.; and Tunica, Miss.
The Hammond property has 44,000 square feet of gaming space and the Joliet casino has 36,000 square feet.
Horseshoe said the addition of the Empress properties will push its net revenues to more than $800 million per year. Horseshoe revenues now run at about $450 million per year.
"The Midwest offers great potential for investment, because it is one of the fastest growing gaming areas of the United States," said Binion, chairman of Horseshoe Gaming. "Bringing Horseshoe's innovative marketing and gaming philosophy to Empress Entertainment is sure to increase Horseshoe's market share in the Midwest market."
Binion founded Horseshoe Gaming in 1993. He is the son of Las Vegas gaming legend Benny Binion, founder of the Horseshoe Club hotel-casino in downtown Las Vegas.
In June, he and two siblings sold their interest in the Las Vegas club to their sister Becky Behnen. The buyout settled Behnen's lawsuit accusing Jack Binion of mismanaging the property and diverting its resources to his Southern casinos.
Horseshoe Gaming reported operating earnings for the quarter ended Dec. 31 of $19.5 million, about even from the year-earlier period. Those earnings were before interest, taxes, depreciation and amortization, and special charges.
Hilton Hotels Corp. and MGM Grand Inc. had also been seen as possible buyers of Empress.
Horseshoe Gaming and Hollywood Park Inc. recently ended a joint venture to try to develop a casino in Indiana.
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