Pinnacle Entertainment buying The Meadows for $138m
March 29, 2016
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Pinnacle Entertainment, a gaming company has announced will acquire the Meadows Racetrack and Casino from Gaming & Leisure Properties for $138 million. Pinnacle will lease the underlying property from Gaming & Leisure under the terms of a triple net lease.
According to its website, Pinnacle Entertainment is a "growing casino entertainment company with nearly 15,000 team members. Pinnacle Entertainment Inc. owns and operates 15 gaming entertainment properties, located in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada and Ohio. Pinnacle holds a majority interest in the racing license owner, as well as a management contract, for Retama Park Racetrack outside of San Antonio, Texas." Its properties also include the Belterra casino in the northern Kentucky/Cincinnati area.
Gaming and Leisure Properties Inc. (GLPI) purchased the entire Meadows property – 80 acres and the entertainment complex – for $440 million in mid-December from Cannery Casino Resorts LLC. That sale and the one with Pinnacle are expected to close in the third quarter this year. In December GLPI had announced that it intended to sell the gaming operations to a third party. The 10-year deal with Pinnacle calls for GLPI to own the real estate and get $25.5 million in rent from the Las Vegas operator during the first year.
Both sales must be approved by the Pennsylvania Gaming Control Board and the Pennsylvania Harness Racing Commission.