Churchill Downs has signalled “a significant moment in the evolution” of the company after closing the $2.75bn purchase of substantially all of the assets of Peninsula Pacific Entertainment.
The acquisition, which was first detailed in February of this year, includes all of P2E’s assets and operations in Virginia, New York and Sioux City, Iowa.
Completion follows receipt of customary licensing approvals from the Virginia Racing Commission, New York State Gaming Commission and Iowa Racing and Gaming Commission.
“Today marks a significant moment in the evolution of Churchill Downs Incorporated,” noted Bill Carstanjen, Chief Executive Officer of CDI.
“This transaction meaningfully expands our geographic footprint to Iowa, New York and Virginia, introducing a very unique set of assets and attractive organic growth opportunities to our company.
“We are excited to welcome the teams from each of these well-established properties into Churchill Downs Incorporated.”
The purchase includes the del Lago Resort & Casino in Waterloo, New York, a 96,000 square foot casino with approximately 1,700 slot machines, 80 table games, 205-room hotel, nine restaurants and bar areas, 758 covered parking spaces, 6,000 square foot sportsbook area, 2,400-seat entertainment venue, and 7,200 square foot outdoor event venue.
Further inclusions are the Hard Rock Hotel & Casino in Sioux City, Iowa, a 45,000 square foot casino with 639 slot machines, 20 table games, a 54-room hotel, 1,511 parking spaces, two live entertainment venues, a 100-piece music memorabilia collection, and a Hard Rock-branded sportsbook.
CDI will also acquire Colonial Downs Racetrack, a thoroughbred racing facility in New Kent, Virginia, as well as six Rosie’s Gaming Emporium historical horse racing facilities across the region. These locations currently include Collinsville, Hampton, New Kent, Richmond, Vinton, and Dumfries.
The company will also gain the rights to build the Dumfries Project gaming resort, with up to 1,800 HRMs in Northern Virginia. P2E previously announced plans to invest up to $400m to build the initial phase of the development, which is scheduled to open in 2023.
Furthermore, Churchill Downs will be able to add a seventh HHR venue under P2E’s Colonial Downs licence, via the potential development of a Rosie’s Gaming Emporium in Emporia.
Other development rights included relate to P2E’s revived development efforts with Urban One to develop One Casino + Resort, a $565m destination casino in Richmond, Virginia.
The company’s gaming licence in the state of Louisiana, and its casino development rights in Cedar Rapids, Iowa, are not included.