Churchill Downs (CDI) has completed its acquisition of all Peninsula Pacific Entertainment (P2E) assets for $2.75bn. Churchill’s buyout encompasses all of P2E’s assets and operations in Virginia, New York and Iowa.
This acquisition follows CDI receiving customary approving licenses from the Virginia Racing Commission, the New York State Gaming Commission and the Iowa Racing and Gaming Commission.
CDI CEO Bill Carstanjen commented: “Today marks a significant moment in the evolution of Churchill Downs Incorporated. This transaction meaningfully expands our geographic footprint to Iowa, New York and Virginia.
“It introduces a very unique set of assets and attractive organic growth opportunities to our company. We are excited to welcome the teams from each of these well-established properties into CDI.”
The P2E purchase includes several substantial brick-and-mortar properties. This includes Colonial Downs Racetrack in New Kent, Virginia, as well as six Rosie’s Gaming Emporium historical horse racing facilities in the Old Dominion state.
These Virginia properties include Collinsville, Dumfries, Hampton, New Kent, Richmond and Vinton, which are home to 2,700 historical racing machines (HRMs).
Additionally, CDI will acquire Del Lago Resort & Casino in New York, a 96,000 square-foot casino with around 1,700 slot machines, 80 table games and a 205-room hotel.
The retail Iowa property it has bought is Hard Rock Hotel & Casino in Sioux City, a 45,000-square-foot casino with 639 slot machines and 20 table games. The casino also boasts a 54-room hotel, 1,511 parking spaces, two live entertainment venues and a Hard Rock-branded sportsbook.
In addition to retail assets, Churchill has acquired development rights for HRMs across Virginia. It can now develop up to five additional HRM entertainment venues in the state, which could add approximately 2,300 additional HRMs to its portfolio.
