HLT Advisory Case Study
Due Diligence on Oklahoma Racetrack/Racino Purchase: Confidential Client
HLT assisted a Canadian client analyze a possible racetrack and racino acquisition in Oklahoma, one of the most competitive gaming jurisdictions in the United States.
Due Diligence on Oklahoma Racetrack/Racino Purchase: Confidential Client
HLT assisted a Canadian client analyze a possible racetrack and racino acquisition in Oklahoma, one of the most competitive gaming jurisdictions in the United States. The racetrack offered approximately 1,000 machines and produced annual gaming revenue in the order of $70 million per annum.
HLT undertook an extensive market assessment including an analysis of competing market areas, gaming revenues achieved on a site-by-site basis and potential new competition. The racino’s player card information was used as a basis for understanding sources of current revenues and travel distances. The due diligence process also included a detailed understanding of revenue share arrangements, future potential (under various redevelopment and competitive scenarios) and likely return on investment.
HLT’s recommendation was not to proceed with the acquisition. Oklahoma remains a highly competitive marketplace with the threat of further competition from legalized gaming in Texas.
