US – Penn National to buy two Tunica casinosBy Phil - 29 March 2017
Penn National Gaming is to buy Bally’s Casino Tunica and Resorts Casino Tunica, for $44m cash.
The deal will see Penn National operate both Tunica properties and lease the underlying real property associated with these two businesses from Gaming and Leisure Properties, with annual rent of $9m.
Timothy Wilmott, Penn National’s President and Chief Executive Officer, said: “We are pleased to partner with Gaming and Leisure Properties to structure this tuck-in transaction which will be immediately accretive to our operating results upon closing. The acquisition will add two complementary casinos to our existing Hollywood Casino Tunica operations thereby presenting Penn National with the opportunity to benefit from a centralized local management structure. We intend to make modest cap-ex investments at the newly acquired casinos to elevate the guest experience while implementing our Marquee Rewards player loyalty program to allow guests to access Penn National’s growing portfolio of properties including our Tropicana Las Vegas resort.”
Together, Bally’s Casino Tunica and Resorts Casino Tunica generated adjusted EBITDA of approximately $21m for the 12 month period ended December 31, 2016.
Bally’s Casino Tunica, the closest Tunica-area casino to downtown Memphis, features a 40,000 square foot casino with 947 slot machines and 16 table games, along with a steakhouse, buffet restaurant, 24-hour café, and a live entertainment venue. Resorts Casino Tunica, which is located adjacent to Penn National’s existing Hollywood Casino Tunica, features a 35,000 square foot casino with 800 slot machines and 9 table games. The property also offers a steakhouse, buffet restaurant and 24-hour café as well as 18,000 square feet of meeting and event space and a 201-room hotel.