The Meadows gets new operator

For the second time in less than two years, The Meadows Racetrack and Casino in Washington County has a new operator.

The Pennsylvania Gaming Control Board this week approved the transfer of the casino’s license from Pinnacle Entertainment Inc. to Penn National Gaming, the owner and operator of the Hollywood Casino at Penn National Race Course in Dauphin County.

Penn National, based in Wyomissing, Pa., purchased Pinnacle in December in a cash-and-stock transaction valued at about $2.8 billion.

Las Vegas-based Pinnacle Entertainment Inc. had taken over operations of The Meadows in September 2016 from Cannery Casino Resorts as part of a deal with Gaming and Leisure Properties Inc., Penn National’s real estate arm.

Under the deal approved by the gaming board this week, Gaming and Leisure Properties will continue to own The Meadows real estate and lease it to Penn National.

To secure the license, Penn National will pay the state a $3.75 million change of control fee after lobbying unsuccessfully before the gaming board to have it reduced to $2.5 million.

In a presentation to the board, Penn National said both The Meadows and the Hollywood Casino will receive the benefits of a combined database or more than 5 million customers, including access to the M Resort and Tropicana in Las Vegas.

Both also will benefit from cross promotion with Penn National’s interactive businesses such as video game terminal operations, which it stated could include possible truck stop locations in Pennsylvania.

The company stated that it plans to continue to invest capital in both Pennsylvania properties.

Penn National also operates a slots-only racetrack casino in the Youngstown, Ohio, area. With the Pinnacle acquisition, it will control 41 properties in 20 jurisdictions with more than 30,000 employees.