Pinnacle Entertainment has been acquired by Penn National with the company now looking towards online gaming opportunities.
On Monday, a huge gaming deal was announced by Penn National Gaming. The company has officially revealed that they are acquiring Pinnacle Entertainment for $2.8 billion. The price point was met with a cash transaction and stock. The deal was approved by the board of directors within both companies, with the acquisition set to be complete by the second half of next year.
The acquisition of Pinnacle by Penn National is a really big deal. Penn National already operate 29 gaming facilities in 17 different jurisdictions. The properties include Hollywood Casinos across the US and the Nevada casino, the Tropicana. Pinnacle has properties in eleven jurisdictions, with 16 total gaming venues.
With the new acquisition, Penn National will have 41 properties in operation. This will equal to more than 53,000 slot games, 1,300 table games, and more than 8,000 hotel rooms. Penn National has a plan to sell four properties owned by Pinnacle to Boyd Gaming. These properties include two casinos in Missouri, the Ameristar Casino Resort Spa St. Charles and the Ameristar Casino Hotel Kansas City, plus the Belterra Park Gaming venue in Ohio and Belterra Casino Resort & Spa of Indiana.
The remaining gaming venues of the Pinnacle portfolio will go towards Penn National’s holdings. CEO of Penn National, Timothy Wilmott, commented on the new deal by stating the following:
How is Online Gambling Involved?
With the new acquisition, players may be wondering how online gambling is involved. Penn National will likely be offering online gaming and made their participation known during the announcement of the Pinnacle acquisition. In a press release on the matter, Penn National stated that the combined company will be able to benefit from additional promotion opportunities in both social and online gaming. The options will help to increase the property level performance of every venue.
Based on information provided, it seems the initial focus will be on social casino gaming. Penn National recently entered the social gaming sector with the creation of Penn Interactive Ventures, and the Rocket Speed, Inc. acquisition.
Penn National owns several Hollywood Casino properties including the venue at the Penn National Race Course in Pennsylvania. This state recently announced the approval of online gaming. It is anticipated that Penn National will be applying for licensing to offer online casino and possibly poker games. The company is interested, even though they have been very vocal about not approving the high tax rate set on online slot gaming.
Penn National will also expand their footprint in Pennsylvania as they will be taking on the Meadows Racetrack and Casino as part of the Pinnacle takeover.
It will now be interesting to watch as Penn National takes on the properties of Pinnacle. They will have many more venues to oversee as well as the ability to further be involved in the online gambling industry in the United States. The brand can also apply for satellite casino licensing if they so choose, which will be something else to watch out for regarding the state of Pennsylvania.
If the company does become invested in the online gambling industry of Pennsylvania, then it would not be surprising to see the company continue investing online in other states if and when legislation is created.