The renowned gaming corporation, Churchill Downs Incorporated (CDI), famous for hosting the Kentucky Derby, is broadening its reach through a major acquisition. CDI is acquiring a majority stake in Peninsula Pacific Entertainment (P2E)’s holdings for a sum close to $2.5 billion.
This transaction grants CDI authority over significant properties in Virginia and New York, notably the celebrated Colonial Downs Racetrack and six additional historical racing establishments in Virginia. Furthermore, they are gaining ownership of the del Lago Resort & Casino in Waterloo, New York, a destination featuring lodging, more than 1,700 slot machines, and a substantial sports betting area.
The acquisition extends its influence into Iowa, where CDI will assume management of the Hard Rock Hotel & Casino in Sioux City. This establishment boasts an expansive gaming floor, lodging facilities, and enjoys considerable popularity in the region. Intriguingly, while CDI will oversee operations at the Hard Rock Sioux City, the property itself will remain under the ownership of an independent entity.
P2E has its sights set on purchasing Sioux City Entertainment. A spokesperson for P2E, Churchill, stated that should an agreement with the existing external operator of the establishment prove unattainable, CDI would intervene and procure it outright. This action would elevate the overall transaction worth to an estimated $2.75 billion.
Churchill further noted that the arrangement remains contingent upon regulatory green lights, encompassing consent from the Virginia Racing Commission, the New York State Gaming Commission, and the Iowa Racing and Gaming Commission.
The finalization of the acquisition is projected to occur before the close of 2022.
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