Penn National Gaming Receives Final Regulatory Approval to Acquire Operations of Hollywood Casino Perryville
Penn National Gaming (PENN) has received final approval from the Maryland Lottery and Gaming Control Commission to acquire Hollywood Casino Perryville for $31.1 million, with a closing projected in mid-2021. The acquisition, initially agreed upon in December 2020, will expand Penn National's footprint to its 20th gaming jurisdiction and includes a lease agreement with Gaming and Leisure Properties, Inc. for annual rent of approximately $7.77 million. The move is timely as Maryland recently legalized sports betting, allowing Penn National to enhance its omni-channel platform with Barstool-branded offerings.
- Acquisition expands Penn National's footprint to 20 gaming jurisdictions.
- Timely entry into the Maryland market post-sports betting legalization.
- Enhances omni-channel platform with Barstool-branded retail sports book and mobile app.
- Closing of the transaction is subject to customary closing conditions.
- Potential delays or non-occurrence of the transaction due to external factors.
Penn National Gaming, Inc. (PENN: Nasdaq)(“Penn National” or the “Company”) announced today that it has received final approval from the Maryland Lottery and Gaming Control Commission (“Commission”) to acquire the operations of Hollywood Casino Perryville. Penn National entered into a definitive agreement with Gaming and Leisure Properties, Inc. (GLPI: Nasdaq) (“GLPI”) in December 2020 to acquire the operations of Hollywood Casino Perryville for
“I want to thank the Commission and their staff for their time and effort in reviewing and approving our Company’s license to operate Hollywood Casino Perryville,” said Jay Snowden, President and CEO of Penn National. “We are thrilled to be re-entering the Maryland market at a property we developed in 2010 as it will add a twentieth gaming jurisdiction to our already leading nationwide footprint.
“In addition, we’re equally excited to be entering this market following the legalization of sports betting in Maryland a few weeks ago. This acquisition provides another opportunity to expand our unique omni-channel platform with a Barstool-branded retail sports book and mobile app,” concluded Mr. Snowden.
The transaction is expected to close in mid-2021, subject to customary closing conditions.
About Penn National Gaming
With the nation's largest and most diversified regional gaming footprint, including 41 properties across 19 states, Penn National continues to evolve into a highly innovative omni-channel provider of retail and online gaming, live racing and sports betting entertainment. The Company's properties feature approximately 50,000 gaming machines, 1,300 table games and 8,800 hotel rooms, and operate under various well-known brands, including Hollywood, Ameristar, and L'Auberge. Our wholly-owned interactive division, Penn Interactive, operates retail sports betting across the Company's portfolio, as well online social casino, bingo, and iCasino products. In February 2020, Penn National entered into a strategic partnership with Barstool Sports, whereby Barstool is exclusively promoting the Company's land-based and online casinos and sports betting products, including the Barstool Sportsbook mobile app, to its national audience. The Company's omni-channel approach is bolstered by the mychoice loyalty program, which rewards and recognizes its over 20 million members for their loyalty to both retail and online gaming and sports betting products with the most dynamic set of offers, experiences, and service levels in the industry.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “goal,” “seeks,” “may,” “will,” “should,” or “anticipates” or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Specifically, forward looking statements include, but are not limited to, statements regarding: the expected benefits and potential challenges of the Perryville transaction with Gaming and Leisure Properties, Inc., including the anticipated benefits for the Company’s online and retail sports betting, iCasino and social casino products; the projected closing date of the Perryville transaction; the Company’s online strategy; the expected launch and expansion of the Barstool-branded mobile sports betting product and its future revenue and profit contributions; and the Maryland gaming market, including with regards to retail and mobile sports betting. Such statements are all subject to risks, uncertainties and changes in circumstances that could significantly affect the Company’s future financial results and business.
Accordingly, the Company cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include, but are not limited to: (a) the magnitude and duration of the impact of the COVID-19 pandemic on general economic conditions, capital markets, unemployment, consumer spending and the Company’s liquidity, financial condition, supply chain, operations and personnel; (b) the closing of the Perryville transaction may be delayed or may not occur at all, for reasons beyond our control; (c) the ability to satisfy the closing conditions to the Perryville transaction in a timely basis or at all; (d) potential adverse reactions or changes to business or regulatory relationships resulting from the announcement or completion of the transaction; (e) the outcome of any legal proceedings that may be instituted against the Company, GLPI or their respective directors, officers or employees; (f) the impact of new or changes in current laws, regulations, rules or other industry standards; (g) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the Company and GLPI to terminate any of the transaction agreements between the companies; (h) other factors as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the U.S. Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.
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FAQ
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