Churchill Downs Inc. Expands Footprint with $2.75 Billion Acquisition of Peninsula Pacific Entertainment
Churchill Downs Incorporated (CDI) has considerably broadened its presence by purchasing a majority stake in Peninsula Pacific Entertainment’s (P2E) holdings for a sum of $2.75 billion.
This acquisition encompasses all of P2E’s establishments and ventures in Virginia, New York, and Sioux City, Iowa. CDI has already secured the required endorsements from the Virginia Racing Commission, the New York State Gaming Commission, and the Iowa Racing and Gaming Commission.
“This marks a truly significant occasion for CDI,” remarked Bill Carstanjen, Chief Executive Officer of CDI.
“This purchase extends our scope into fresh and promising territories while incorporating some of the industry’s finest resources into our collection. We are delighted to embrace these storied properties and their personnel into the Churchill Downs fold.”
The obtained assets consist of Colonial Downs Racetrack in New Kent, Virginia, six Rosie’s Gaming Emporium legacy horse racing venues throughout Virginia, del Lago Resort & Casino in Waterloo, New York, and Hard Rock Hotel & Casino in Sioux City, Iowa.
This major purchase is a game-changer! It grants the rights to establish five fresh historical horse racing (imagine them as slot-style games, but with an equestrian twist!) entertainment destinations in the state of Virginia. Furthermore, they gain the ability to construct a sprawling new facility in Dumfries, Virginia, capable of accommodating a maximum of 1,800 of these gaming devices.
But wait, there’s more! The agreement encompasses the privilege to develop an additional venue in Emporia, Virginia, with a capacity for up to 150 machines. Moreover, they are collaborating with Urban One on a colossal $565 million endeavor known as ONE Casino + Resort in Richmond, Virginia.
It is noteworthy that CDI, the entity behind this acquisition, recently unveiled their financial results for the third quarter. Despite a slight dip in their total revenue, they witnessed an expansion in their adjusted EBITDA, a metric that reflects their profitability.