As noted by CDI, the acquisition includes all of P2E’s assets and operations in Virginia, New York and Sioux City, Iowa. It follows receipt of customary licensing approvals from the Virginia Racing Commission, the New York State Gaming Commission and the Iowa Racing and Gaming Commission.
“Today marks a significant moment in the evolution of Churchill Downs Incorporated,” said CDI CEO Bill Carstanjen.
“This transaction meaningfully expands our geographic footprint to Iowa, New York and Virginia, introducing a very unique set of assets and attractive organic growth opportunities to our company. We are excited to welcome the teams from each of these well-established properties into Churchill Downs Incorporated.”
Included in the acquisition are Colonial Downs Racetrack in New Kent, Virginia, as well as six Rosie’s Gaming Emporium historical horseracing facilities across Virginia, Del Lago Resort & Casino in Waterloo, New York, and Hard Rock Hotel & Casino in Sioux City, Iowa.
The acquisition also includes other development rights, including the opportunity to develop up to five additional historical racing machine (HRM) entertainment venues in Virginia, and the rights to build a new HRM entertainment venue with up to 1,800 HRMs in Dumfries, Virginia.
Also involved are the rights to develop a new HRM entertainment venue with up to 150 HRMs in Emporia, Virginia, and the rights to P2E’s ongoing effort in partnership with Urban One to develop ONE Casino + Resort, a $565m destination casino in Richmond, Virginia.
Last week, CDI reported a 4.5% increase in adjusted EBITDA for Q3, despite a modest 2.5% decrease in net revenue. The company’s top-line declined by approximately $10m year-on-year, dropping from $393m to $383.1m.
