Penn National announced on Tuesday that it has reached an agreement with Gaming and Leisure Properties Inc. to acquire the operations of the Hollywood Casino in Perryville for $31.1M.
The regional casino operator will pay for the transaction in cash and it will also lease the property from GLPI for $7.77M per year. The deal is expected to be completed in the middle of 2021 but pending the approval of the Maryland Lottery and Gaming Commission. Once consummated, Penn National will have operations in 20 states throughout the United States.
Said Penn National President and CEO Jay Snowden:
“With the recent approval of sports betting through the overwhelming passage of Question 2 on Election Day, Maryland is expected to soon become a significant retail and mobile sports betting market.”
Maryland Legal Sports Betting
During last month’s elections, Maryland voters favored legal sports betting in the state by a margin of about 2 to 1. The vote enabled the Old Line State to join neighbors Delaware, Pennsylvania, West Virginia, and the District of Columbia as states which have legalized sports betting since the U.S. Supreme Court repealed the 1992 Professional and Amateur Sports Protection Act.
With the people’s approval, the onus is now with Maryland’s General Assembly to develop and approve the structure for Maryland legal sports betting. The structure would outline among others which businesses can apply for a license, how and where fans could place bets, and how the revenues would be shared between the state and operator. Once the rules are finalized and legislation is enabled, state analysts expect Maryland legal sports betting to generate an annual revenue of $18.2M for the state for both in-person and online sports betting if operations are taxed at 20%.
Part of April Deal with GLPI
The Perryville Hollywood Casino was actually developed by Penn Gaming in 2010. GLPI assumed ownership of the Perryville property in 2013 when Penn National split its casino operations from its real estate business. Last April, Penn struck a deal with GLPI to sell Tropicana Las Vegas for $305.7M in rent credits. The agreement allowed Penn to retain operations of the Strip resort and it was given the right to acquire Hollywood Casino in Perryville.
Penn operates 41 properties in 19 states while offering retail and online gaming, live racing, and sports betting entertainment. Its casinos and hotels have an aggregate 50,000 gaming machines, 1,300 table games, and 8,800 hotel rooms operating under brands such as Ameristar, L’Auberge, and Hollywood.