Churchill Downs Inc. announced on February 22 that it has entered into a definitive purchase agreement to acquire the majority of Peninsula Pacific Entertainment’s assets, a range of game assets including Colony Downs in Virginia.
According to a release from CDI, the transaction totaled $2.485 billion.
In addition to Colonial Downs, properties involved in the sale include del Lago Resort & Casino in Waterloo, NY and the Hard Rock Hotel & Casino in Sioux City, Iowa. All three properties operate traditional casinos or historic horse racing facilities that resemble slot machines.
“This unique set of assets expands our geographic reach and provides additional scale,” said Bill Carstanjen, CEO of CDI. “(Peninsula Pacific Entertainment) has done an exceptional job in developing and managing this collection of properties, which we are delighted to acquire and strategically plan to grow in the coming years. “
The transaction, subject to normal and customary closing conditions, including regulatory approvals, is expected to close by the end of 2022.
Colonial Downs, located in New Kent, Va., operates six lucrative HHR “Rosie’s Gaming Emporium” locations throughout Virginia. These facilities currently have approximately 2,700 HHR consoles.
Under Virginia law, CDI will have the opportunity to develop up to five more historic racing entertainment venues in Virginia for a total of approximately 2,300 additional HHR machines. As part of the entertainment transaction at Peninsula Pacific Entertainment, CDI will also acquire the rights to build a large gaming resort, Project Dumfries, with up to 1,800 HHR machines in Northern Virginia. Peninsula Pacific Entertainment previously announced plans to invest up to $400 million to build the first phase of Project Dumfries, scheduled to launch in 2023.
CDI will also acquire the rights to develop Rosie’s Gaming Emporium in Emporia, Va., the seventh historic racing entertainment venue under the Colonial Downs license from Peninsula Pacific Entertainment. The Emporia facility, located along I-95 near the North Carolina border, will house 150 HHR devices and is expected to open in 2023.
Under the terms of the transaction announced Tuesday, Pinnacle expects to reach a definitive agreement to sell Hard Rock Sioux City-related real estate to a third party, and CDI will acquire it. company that operates and leases Sioux City Property from there. In the event that Peninsula Pacific Entertainment is unsuccessful in reaching a definitive agreement with a third party to purchase the Sioux City Property by a certain date, the Sioux City Property will be included in the Pacific Entertainment Peninsula transaction. and the total amount of consideration will increase to 2.75 billion USD .
Also included in the Peninsula Pacific Entertainment Transaction are the rights to Peninsula Pacific Entertainment’s ongoing effort, in partnership with Urban One, to develop ONE Casino + Resort, a $565 million destination casino in Richmond, Va.
Peninsula Pacific Entertainment’s gaming license in Louisiana and its casino development rights in Cedar Rapids, Iowa, are not included in the transaction.
