Churchill Downs Incorporated (CDI) just struck gold, acquiring a substantial portion of Peninsula Pacific Entertainment’s (P2E) holdings for a hefty $2.75 billion. This transaction significantly expands CDI’s presence in Virginia, New York, and Iowa. With regulatory approvals secured in all three states, the company is poised for immediate action.
Bill Carstanjen, CDI’s Chief Executive Officer, expressed immense enthusiasm for the acquisition. He views it as a transformative step for the organization, unlocking promising opportunities in highly desirable markets. The agreement encompasses several prominent gaming establishments: Colonial Downs Racetrack in New Kent, Virginia; six Rosie’s Gaming Emporium venues (also in Virginia); del Lago Resort & Casino in Waterloo, New York; and Hard Rock Hotel & Casino in Sioux City, Iowa. CDI appears ready to establish a dominant position in these new territories.
The purchase brings some enticing bonuses. Imagine this: the possibility of over five new historic horse racing (HHR) venues in Virginia. Plus, it grants the ability to construct a completely new HHR entertainment complex in Dumfries, Virginia, potentially housing a massive 1,800 HHR machines.
But hold on, there’s more! The agreement also encompasses development rights for another HHR location in Emporia, Virginia, accommodating up to 150 machines. Here’s the clincher: P2E is joining forces with Urban One to create ONE Casino + Resort in Richmond, Virginia. We’re talking about a colossal $565 million casino resort endeavor.
Recently, CDI announced that despite a minor decrease in their net income (2.5% to be precise), their adjusted EBITDA for the third quarter actually increased by 4.5%. Their revenue experienced a slight decline, dropping approximately $10 million compared to the previous year, going from $393 million to $383.1 million.