The Pennsylvania Gaming Control Board has approved a deal that will see Pinnacle Entertainment Incorporated acquire the casino and racetrack operations at The Meadows Racetrack And Casino from Gaming And Leisure Properties Incorporated for $138 million.
Located some 25 miles southwest of downtown Pittsburgh, The Meadows Racetrack And Casino opened in 2007 and offers 3,170 slots alongside 74 gaming tables and an eleven-table poker room in addition to a 5/8-mile harness racing track with a 500-seat grandstand. There are also eleven on-site restaurants, bars and lounge outlets, an 11,000 sq ft events center and a 24-lane bowling center while hotel accommodation is provided by the attached but separately managed 155-room Hyatt Place hotel.
Wyomissing-based Gaming And Leisure Properties Incorporated, which is a casino-focused real estate investment trust spun off from Penn National Gaming Incorporated in 2013, spent $440 million in December to purchase the Washington County site from Cannery Casino Resorts and will now lease the entire operation to Pinnacle Entertainment Incorporated for at least the next ten years for an initial annual fee of $25.5 million.
The Pennsylvania Gaming Control Board’s approval represents the final regulatory hurdle required for Pinnacle Entertainment Incorporated to complete its acquisition of the Pennsylvania casino and follows last month’s receipt of consent from the Pennsylvania Harness Racing Commission.
“We thank the Pennsylvania Gaming Control Board and the Pennsylvania Harness Racing Commission for their diligence, professionalism and expedience in reviewing and approving The Meadows [Racetrack And Casino] transaction,” said Anthony Sanfilippo, Chief Executive Officer for Pinnacle Entertainment Incorporated. “We are excited to expand our company into the state of Pennsylvania and the greater Pittsburgh metropolitan area and look forward to welcoming the guests and 1,300 team members of The Meadows [Racetrack And Casino] into the Pinnacle Entertainment Incorporated family.”
Las Vegas-based Pinnacle Entertainment Incorporated, which operates casinos in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada and Ohio along with a horse track in Texas, revealed that the deal can be extended to 29 years while it will moreover be required to pay a $2.5 million change-of-control fee to the state. It declared that it now expects to complete the transaction on Friday while explaining that The Meadows Racetrack And Casino last year generated net revenues of approximately $290 million along with adjusted earnings before interest, tax, depreciation, amortization and restructuring costs of around $48 million.
“The Meadows [Racetrack And Casino] is a beautiful and dynamic gaming entertainment destination situated in a stunning location,” said Sanfilippo. “The Meadows [Racetrack And Casino] has a broad base of operations that encompasses high-quality gaming and other guest entertainment amenities as well as talented team members that deliver memorable service experiences to its guests. The Meadows [Racetrack And Casino] will complement our existing collection of terrific properties and provide additional operational scale, geographic diversification and another wonderful location for the guests of Pinnacle Entertainment Incorporated’s 15 other gaming entertainment businesses to visit.”