Churchill Downs Incorporated (CDI) has considerably broadened its reach through a $2.5 billion purchase of Peninsula Pacific Entertainment (P2E). This transaction encompasses a portfolio of casinos and gambling venues in Virginia, New York, and Iowa.
Bill Carstanjen, the Chief Executive Officer of CDI, described the acquisition as a “game-changing prospect” for the organization, stating that they are eager to integrate the seasoned staff from these well-established locations into the Churchill Downs team.
Included in the acquired assets are the Colonial Downs Racetrack situated in New Kent, Virginia, a half-dozen Rosie’s Gaming Emporium historical horse racing establishments throughout Virginia, the del Lago Resort & Casino in Waterloo, New York, and the Hard Rock Hotel & Casino located in Sioux City, Iowa.
The purchase broadens CDI’s reach in Virginia, providing them the opportunity to establish over five new historic horse racing (HHR) venues. This encompasses a potentially substantial location in Dumfries, with the capacity for up to 1,800 HHR terminals.
Cementing their presence further, CDI also receives approval for a new HHR entertainment destination in Emporia, accommodating 150 machines. Enhancing their holdings is a partnership with Urban One to create the ambitious ONE Casino + Resort in Richmond – a $5.65 billion endeavor.
This announcement follows CDI’s recent third-quarter financial report. Although they encountered a minor decline in net income (2.5% reduction), their adjusted EBITDA demonstrated positive movement, rising by 4.5%. Despite this increase, the company’s total revenue witnessed a year-over-year drop of roughly $10 million.
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