Penn National Gaming acquires Maryland casino
Penn National Gaming Inc. said Tuesday that it will acquire the operations of Hollywood Casino Perryville in Maryland from Gaming and Leisure Properties Inc. for $31.1 million.
In a press release, Wyomissing-based Penn National said it will enter into a lease with GLPI for the real estate assets associated with the facility with annual rent of approximately $7.77 million. The lease will have an initial term of 15 years with four 5-year extensions.
Gaming and Leisure, also based in Wyomissing, is a real estate investment trust, that was spun off from Penn National in 2013.
Penn National President and CEO Jay Snowden said Maryland’s recent approval of sports betting made Perryville an attractive purchase.
“Penn National is excited to acquire the operations of Hollywood Casino Perryville, a property we developed in 2010, which will allow us to re-enter the strong Maryland gaming market and add a 20th gaming jurisdiction to our leading nationwide footprint,” Snowden said in a statement. “In addition, 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. As such, this acquisition provides another opportunity to expand our unique omni-channel platform with a Barstool-branded retail sportsbook and mobile app.”
The transaction is expected to close in mid-2021, subject to the approval of the Maryland Lottery and Gaming Control Commission and other customary closing conditions.
In another deal, GLPI said it will sell the operations of Hollywood Casino Baton Rouge in Louisiana to Casino Queen Holding Company Inc. for $28.2 million. GLPI will retain ownership of all real estate assets and will simultaneously enter into a master lease with Casino Queen, which will include both the DraftKings at Casino Queen property in East St. Louis, Ill. and the HCBR facility, for initial annual cash rent of approximately $21.4 million. The lease will have an initial term of 15 years with four 5-year extensions.
“The sale of our operations in Baton Rouge and Perryville is bittersweet as both properties were foundational to the creation of GLPI seven years ago,” said Peter Carlino, Chairman and CEO of GLPI, in a statement. “We are grateful to the team members who do an amazing job managing these properties and delivering great guest entertainment and amenities, particularly in the face of the challenges brought on by the pandemic.”