Land-based Hollywood Casino to replace riverboat gaming operations Iowa

(PRESS RELEASE) -- PENN Entertainment, Inc. announced today plans for an expected $180–$200 million project to relocate its Ameristar Casino Hotel - Council Bluffs riverboat casino operations to a new, state-of-the-art land-based property to be rebranded as Hollywood Casino Council Bluffs. The proposal was approved by the Iowa Racing and Gaming Commission this morning in conjunction with a 15-year extension of Ameristar’s partnership with the nonprofit Qualified Sponsoring Organization Iowa West Racing Association. All commercial operators in Iowa are required to have an operating agreement with a QSO licensed to conduct gaming operations.

Under the proposed plan, the new Hollywood Council Bluffs is expected to include roughly 125,000 square feet of new development with approximately 58,000 square feet of gaming space and more than 1,000 positions on a single level. The new facility will complement the existing ESPN BET sportsbook, 160-room hotel and dining options in the landside portion of the current infrastructure. The existing riverboat, which presently offers gaming spread out over three levels, will be vacated upon opening of the new property.

“We are pleased to add another landside relocation to our pipeline of development projects,” said Todd George, Executive Vice President of Operations for PENN. “This project will enhance the quality and efficiency of our Council Bluffs location and significantly improve the property’s competitive positioning in the greater Omaha market. PENN’s diversified portfolio of casino properties is core to our omni-channel approach to entertainment, which combines our best-in-class retail operations and a database of more than 32 million PENN Play members with our robust interactive and media footprint. We thank the Iowa Racing and Gaming Commission for their approval today and are grateful for the continued collaboration with our partners at the Iowa West Racing Association.”

“We are thrilled with the exciting development plans for the new Hollywood Casino Council Bluffs,” said Brenda Mainwaring, President & CEO of the Iowa West Racing Association. “For nearly thirty years, the Ameristar riverboat has been providing not only dining and entertainment, but thousands of jobs and millions of dollars in support of our community. PENN’s commitment to reinvesting in Council Bluffs is laudable and we are grateful for our ongoing partnership.”

Construction of the new facility is expected to take approximately 18-24 months following the design and permitting approval process. The Company is entitled to obtain financing for the project from Gaming and Leisure Properties, Inc. of up to $150 million at a 7.10% cap rate, which may be structured at PENN’s option as either rent or a 5-year term loan that is pre-payable at any time without penalty.