Churchill Downs Incorporated (CDI) recently made a significant impact in the gambling sector by purchasing a majority stake in Peninsula Pacific Entertainment (P2E)’s holdings for a substantial $2.75 billion. This transaction expands CDI’s reach throughout the United States, incorporating venues in Virginia, New York, and Iowa into its existing assets.
This acquisition encompasses several prominent names in the business, such as Colonial Downs Racetrack in Virginia, six Rosie’s Gaming Emporium historical horse racing establishments also located in Virginia, del Lago Resort & Casino in Waterloo, New York, and Hard Rock Hotel & Casino Sioux City in Iowa.
CDI’s Chief Executive Officer, Bill Carstanjen, expressed enthusiasm about the agreement, referring to it as a “pivotal moment” for the organization and emphasizing the growth opportunities presented by these newly acquired properties. This strategic move demonstrates CDI’s dedication to expanding its presence within the gaming and entertainment sector, and it will be intriguing to observe how they leverage these new assets.
The purchase increases Churchill Downs Incorporated’s reach in Virginia. This agreement allows them to establish five new historical racing (HHR) locations throughout the commonwealth, building upon their current operations. A notable addition is a completely new establishment in Dumfries, Virginia, designed to accommodate up to 1,800 HHR devices. Another initiative is a smaller location in Emporia, projected to house up to 150 machines.
Importantly, the transaction also encompasses Churchill Downs Incorporated’s involvement in the ONE Casino + Resort venture in Richmond, Virginia. This $565 million endeavor, a joint effort with Urban One, represents a substantial undertaking.
This announcement follows closely behind Churchill Downs Incorporated’s Q3 earnings release last week. They reported adjusted EBITDA expansion of 4.5%, notwithstanding a minor 2.5% decline in net revenue. In total, year-over-year revenue experienced a reduction of approximately $10 million.
