Colorado recently became the 13th state to approve Penn National Gaming’s $2.8 billion purchase of Pinnacle Entertainment, as the state Division of Gaming recently approved the deal. Penn National Chief Executive Officer Tim Wilmott said, “With just a few requisite regulatory hearings remaining, we remain on schedule to complete the transaction early in the fourth quarter.” Penn and Pinnacle shareholders approved the acquisition in March.
Also in March, the Federal Trade Commission made a second request for “additional information and documentary material” regarding the buyout, but so far Penn National has not responded. The companies have not disclosed what aspect of the deal led to the second request.
To address antitrust issues, Pinnacle will sell four of its 16 properties to Boyd Gaming Corporation for $575 million, including two Ameristar casinos in Missouri and the Belterra gaming brands in Indiana and Ohio–. Boyd will sign a lease agreement with real estate investment trust Gaming and Leisure Properties, the landlord for the Pinnacle-owned resorts.
Penn National continues to expand its holdings, with the recent acquisition of Margaritaville Resort Casino in Bossier City, Louisiana for $376 million in a joint agreement with real estate investment trust VICI Properties. Penn National also will build two mini-casinos in Pennsylvania with have 750 slot machines and 30 table games each.
Assuming the FTC approves it, the Penn National will acquire Pinnacle’s 12 casinos by the end of the year, making it the largest regional gaming operator in the U.S. with 41 properties in 20 jurisdictions.
