Churchill Downs Incorporated (CDI) has executed a significant maneuver in the gambling industry, purchasing a substantial portion of Peninsula Pacific Entertainment’s (P2E) holdings for a hefty $2.75 billion. This transaction expands CDI’s presence nationwide, assuming control of operations in Virginia, New York, and Iowa. Regulatory approvals in these states have already been secured, paving the way for a seamless transition.
Bill Carstanjen, CEO of CDI, characterized this as a “pivotal moment” for the company. The acquisition extends beyond merely increasing the number of venues; it incorporates renowned properties and unlocks promising new growth opportunities.
Consider historic horse racing destinations like Colonial Downs Racetrack in New Kent, Virginia, along with six Rosie’s Gaming Emporium establishments throughout the state. Furthermore, there’s del Lago Resort & Casino in Waterloo, New York, and Hard Rock Hotel & Casino Sioux City in Iowa. CDI has solidified its position as a major contender in these areas.
This purchase was a significant agreement! It encompassed the authorization to establish over five new historic horse racing (HHR) locations in Virginia. This encompasses a substantial new site in Dumfries that can accommodate up to 1,800 HHR devices. They also secured the privileges to construct another HHR establishment in Emporia for up to 150 devices.
And the icing on the cake? This agreement incorporates a collaboration with Urban One to develop the ONE Casino + Resort in Richmond, Virginia. This is a colossal undertaking with a $5.65 billion cost.
It appears CDI is making substantial strides, even though their latest quarterly report displayed a minor decrease in revenue. While their net income was slightly lower, their adjusted EBITDA actually increased. It seems they’re thinking long-term and investing in some major ventures that could yield significant returns in the future.
