Louisville-based Churchill Downs Inc. (CDI) recently announced it has agreed to acquire Los Angeles-based Peninsula Pacific Entertainment (P2E) for nearly $2.485 billion. The deal is expected to close by the end of this year.
P2E owns and operates Colonial Downs Racetrack in New Kent and Rosie’s Gaming Emporiums, which offer historical horseracing machines, in the Virginia cities of Collinsville, Dumfries, Hampton, New Kent, Richmond and Vinton. Altogether, the Virginia Rosie’s locations offer 2,700 HHR machines.
The agreement also gives CDI the rights to develop a Rosie’s Gaming Emporium in Emporia, the seventh historical racing entertainment venue under P2E’s Colonial Downs license, and up to five new Rosie’s locations with up to a combined 2,300 additional machines.
In addition, the deal includes the assets at del Lago Resort & Casino in Waterloo, New York, casino operations at Hard Rock Hotel & Casino in Sioux City, Iowa and the horseracing online betting platform Churchill Downs TwinSpires. Virginia, as well as properties in Iowa and New York.
Also included in the transaction is the $400 million Rose gaming resort, expected to open in 2023 in Prince William County, featuring gaming dining, entertainment, green spaces and more.
In a statement, Churchill Downs said, “The transaction significantly expands the geographic diversity of CDI’s live and historical racing entertainment venues and reinforces CDI’s role as a national leader in historical horseracing. The deal is dependent on usual and customary closing conditions, including the company obtaining approvals from the Virginia Racing Commission, the New York State Gaming Commission and the Iowa Racing and Gaming Commission.”
Churchill Downs Inc. Chief Executive Officer Bill Carstanjen stated, “This unique set of assets expands our geographic footprint and provides additional scale. P2E has done an exceptional job developing and managing this collection of assets, which we are very excited to acquire and plan to strategically grow in the years ahead.”
Analyst Dan Politzer of Wells Fargo said, “The acquisition is strategic and sensible as it strengthens CHDN’s position as a historical racing operator and expands its footprint into Virginia, the second largest historical horse racing market after Kentucky.”
CDI also will acquire the rights to P2E’s ongoing effort to develop the $565 million ONE Casino + Resort in Richmond, Virginia, in a partnership with Urban One. Richmond voters rejected proposed venue in a referendum last year but it’s possible a second vote may be held.
The acquisition excludes P2E’s gaming license in Louisiana, where the company owns the shuttered DiamondJacks Casino in Bossier City, which closed due to Covid-19 in March 2020. Last year, St. Tammany voters rejected P2E’s attempt to move the license to Slidell and open the $325 million Camellia Bay Resort. Afterward, the Louisiana Gaming Control Board gave P2E 60 days to reopen DiamondJacks or sell the license, or risk forfeiture.
P2E recently informed regulators it’s negotiating to sell DiamondJacks to Mississippi-based Foundation Gaming Group, owners of the Fitz Casino and Hotel and WaterView Casino & Hotel.
