Churchill Downs to Acquire Peninsula Pacific Entertainment in $2.5 Billion Deal
The renowned company Churchill Downs Incorporated, famous for hosting the Kentucky Derby, is significantly expanding its gaming empire. In a major deal worth a staggering $2.5 billion, the company will purchase a majority stake in Peninsula Pacific Entertainment’s (P2E) holdings. This acquisition will give Churchill Downs a foothold in the lucrative markets of Virginia, New York, and Iowa.
A key component of this purchase is the historic Colonial Downs Racetrack situated in New Kent County, Virginia. In addition to the track, Churchill Downs will gain control of six off-track betting venues within Virginia, cementing its dominance in the world of horse racing.
The agreement also encompasses the del Lago Resort & Casino in Waterloo, New York. This sprawling complex features a vast gaming area with slot machines, table games, a hotel, and a dedicated sports betting section.
Furthermore, Churchill Downs will assume management of the Hard Rock Hotel & Casino in Sioux City, Iowa. This vibrant venue provides a more personalized gaming atmosphere with slots, table games, and hotel accommodations.
In an intriguing twist, the real estate connected to the Hard Rock Sioux City will be sold to an outside buyer, with Churchill Downs leasing it back. This calculated maneuver allows the company to concentrate on its core competency – delivering exceptional gaming experiences.
Should Churchill Downs Incorporated (CDI) fail to solidify a deal with the existing manager of the Sioux City gaming establishment, they are prepared to acquire the entire property. This action would elevate the total purchase amount to $2.75 billion.
CDI also indicated the necessity of approvals from several racing regulatory bodies – specifically Virginia, New York, and Iowa – prior to concluding the transaction.
The anticipated completion date for the agreement is before the end of 2022.