Churchill Downs Incorporated (CDI) has successfully completed its acquisition of Peninsula Pacific Entertainment (P2E) for a total consideration of $2.75 billion. This strategic move expands CDI’s geographic footprint to Iowa, New York, and Virginia, bringing in a unique set of assets and promising organic growth opportunities. The acquisition has received approvals from the Virginia Racing Commission, the New York State Gaming Commission, and the Iowa Racing and Gaming Commission.
A Major Milestone for Churchill Downs Incorporated:
Churchill Downs Incorporated’s CEO, Bill Carstanjen, expressed his excitement about the significant moment in the company’s evolution. The acquisition of P2E positions CDI to make a strong presence in the entertainment and gaming markets of three states.
The Assets Included in the Acquisition:
The P2E acquisition encompasses various prominent properties in Virginia, New York, and Iowa:
a. Colonial Downs Racetrack in New Kent, Virginia:
This property boasts six Rosie’s Gaming Emporium historical horse racing facilities across Virginia, featuring approximately 2,700 historical racing machines. The acquisition of Colonial Downs Racetrack and Rosie’s locations adds valuable assets to CDI’s portfolio.
b. Del Lago Resort & Casino in Waterloo, New York:
Del Lago Resort & Casino is a 96,000 sq. ft. casino offering approximately 1,700 slot machines, 80 table games, a 205-room hotel, nine restaurants/bar areas, 758 covered parking spaces, a 6,000 sq. ft. sportsbook area, a 2,400-seat entertainment venue, and a 7,200 sq. ft. outdoor event venue. The addition of Del Lago expands CDI’s presence in the vibrant New York gaming market.
c. Hard Rock Hotel & Casino in Sioux City, Iowa:
This 45,000 sq. ft. casino features 639 slot machines, 20 table games, a 54-room hotel, 1,511 parking spaces, two live entertainment venues, a remarkable 100-piece music memorabilia collection, and a Hard Rock-branded sportsbook. The acquisition of Hard Rock Hotel & Casino strengthens CDI’s position in the Iowa gaming landscape.
Other Development Rights:
In addition to the assets acquired, CDI also secured various development rights as part of the P2E acquisition:
a. Expansion in Virginia:
CDI gains the opportunity to develop up to five additional HRM (historical racing machines) entertainment venues in Virginia, collectively adding approximately 2,300 more HRMs.
b. Dumfries, Virginia Project:
CDI holds the rights to construct a new HRM entertainment venue in Dumfries, Virginia, featuring up to 1,800 HRMs. The initial phase of this project is anticipated to open in 2023, offering exciting entertainment options to the Northern Virginia community.
c. Emporia, Virginia Project:
CDI also has the rights to develop a new HRM entertainment venue with up to 150 HRMs in Emporia, Virginia. This location, situated along I-95 near the North Carolina border, is expected to open in 2023.
d. ONE Casino + Resort in Richmond, Virginia:
CDI, in partnership with Urban One, is working on the development of ONE Casino + Resort, an ambitious $565 million destination casino in Richmond, Virginia. This project is set to bring a new level of entertainment and gaming experience to the city.
The acquisition of P2E marks a major milestone for Churchill Downs Incorporated, propelling the company into new markets in Iowa, New York, and Virginia. With the addition of Colonial Downs Racetrack, Del Lago Resort & Casino, and Hard Rock Hotel & Casino, CDI’s portfolio has expanded significantly. Moreover, the obtained development rights open doors to further growth opportunities, allowing CDI to establish a stronger foothold in the gaming and entertainment industry. As CDI welcomes the teams from P2E’s well-established properties, the future looks promising for both the company and its valued customers.