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Law360 (May 20, 2020, 4:28 PM EDT) -- Casino operator Saratoga Harness Racing Inc.'s anticipated purchase of American Gaming Group's Wildwood Casino in Colorado has fallen apart due to the coronavirus pandemic, with both companies announcing Wednesday that the deal is off.
In a press release, SHRI and American Gaming said unwinding the acquisition was necessary due to "the current economic impacts of the COVID-19 health crisis."
"At this time, we believe it's in the best interest of both companies, and our respective casinos, to cancel the deal so we can focus on doing what's best for our casinos and our players," American Gaming's Joe Canfora, the co-owner of Wildwood Casino, said in the release. "At Wildwood, we're taking this time to develop and implement an entire health and safety strategy that goes above and beyond state and local guidelines to better protect our players and provide a comfortable, safe environment for gaming."
The two companies first announced the deal in mid-March, just as businesses across the country began to close as new coronavirus cases exploded in the U.S.
That announcement did not mention how much SHRI was paying for Wildwood Casino under the terms of the deal.
Wildwood Casino opened in 2008, making it the newest casino in the historic mining town-turned-tourist-destination of Cripple Creek, Colorado. The 24-hour casino operates more than 500 slots and table games and has multiple restaurants on site. Last May, Wildwood Casino began construction on a $14 million, 104-room hotel.
On May 1, the casino opened its sportsbook, as a new law took effect in Colorado that legalized sports betting following the 2018 Supreme Court decision that struck down a federal ban on the practice.
With all professional sports leagues in the U.S. currently shut down due to the pandemic, the Colorado Springs Gazette recently reported that casinos in the Centennial State have resorted to offering bets on darts, table tennis and international soccer games, among other things.
SHRI, meanwhile, owns and operates the Saratoga Casino Hotel in Saratoga Springs, New York, and the Saratoga Casino Black Hawk in Black Hawk, Colorado.
In Wednesday's press release, Wildwood Casino officials said the company will focus its efforts on rolling out new features designed to allow visitors to continue gambling in person at the casino, such as cleaning crews that will descend on the facilities every evening for a deep clean. The officials said they're also looking into "UV light technologies for potential air filtration and other newly discovered, best practices for protecting patrons from the virus."
"This is all about the safety and security of our players and our employees," Wildwood Casino's Assistant General Manager Matt Andrighetti said.
--Editing by Stephen Berg.
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