Penn National Gaming received preliminary approval yesterday to acquire the Las Vegas property of the Tropicana. Nevada gaming regulators gave the approval after voicing some concerns over the transaction. The final approval is expected by the 20th of August when the Nevada Gaming Commission looks over the information provided by the Gaming Control Board.
Penn National already operates 26 casinos across the nation with a customer database of 3 million individuals. Jay Snowden, the COO of Penn National, stated previously to the board that the company’s customers, around 25%, visit Las Vegas on a regular basis. Penn does operate the M Resort in Henderson, but this hotel/casino is located 10 miles from the biggest section of the Strip.
Once the deal is finalized, Penn National plans on spending $20 million on technology to upgrade the hotel along the Las Vegas Strip. After the technology upgrade, the company could then spend as much as $200 million to revenue the hotel in a two year time frame. The Tropicana casino floor will see the addition of newer slot games and make more changes based on what customers would like to see.
Snowden stated that Penn believes they can improve the gaming floor experience. When the database is updated, the company will be able to invite their players to visit Las Vegas at the Tropicana Casino.