Churchill Downs Incorporated (CDI) announced the completion of the purchase of substantially all of the assets of Peninsula Pacific Entertainment LLC (P2E) for total consideration of $2.75 billion.
The acquisition includes all of P2E’s assets and operations in Virginia, New York and Sioux City, Iowa, and follows receipt of customary licensing approvals from the Virginia Racing Commission, the New York State Gaming Commission and the Iowa Racing and Gaming Commission.
“Today marks a significant moment in the evolution of Churchill Downs Incorporated,” said Bill Carstanjen, chief executive officer of CDI. “This transaction meaningfully expands our geographic footprint to Iowa, New York and Virginia, introducing a very unique set of assets and attractive organic growth opportunities to our company. We are excited to welcome the teams from each of these well-established properties into Churchill Downs Incorporated.”
Also included in the deal is Colonial Downs Racetrack in New Kent, Virginia, as well as six Rosie’s Gaming Emporium historical horse racing (HHR) facilities across Virginia. Rosie’s locations currently include Collinsville, Dumfries, Hampton, New Kent, Richmond and Vinton, and includes approximately 2,700 HHR machines.
The purchase also extends to Del Lago Resort & Casino in Waterloo, New York, a 96,000-square-foot casino with approximately 1,700 slot machines, 80 table games, a 205-room hotel, nine restaurants/bar areas, 758 covered parking spaces, a 6,000-square-foot sportsbook area, a 2,400-seat entertainment venue, and a 7,200-square-foot outdoor event venue; and Hard Rock Hotel & Casino in Sioux City, Iowa, a 45,000-square-foot casino with 639 slot machines, 20 table games, a 54-room hotel, 1,511 parking spaces, two live entertainment venues, a 100-piece music memorabilia collection, and a Hard Rock-branded sportsbook.
CDI now has the opportunity, under Virginia law, to develop up to five additional HHR entertainment venues in Virginia with collectively up to approximately 2,300 additional HHR machines, and the rights to build a new HHR entertainment venue with up to 1,800 machines in Dumfries, Virginia. The Dumfries project is located in northern Virginia with the initial phase expected to open in 2023.
The deal also grants rights to develop a new HHR entertainment venue with up to 150 machines in Emporia, Virginia. The Emporia project, located along I-95 near the North Carolina border, is expected to open in 2023.
Finally, CDI now has rights to P2E’s ongoing effort, in partnership with Urban One, to develop ONE Casino + Resort, a $565 million destination casino in Richmond, Virginia.
