Penn National Gaming has entered into a definitive agreement to acquire the operations of Hollywood Casino Perryville.
Penn National will acquire the casino operations from Gaming and Leisure Properties (GLPI) for $31.1m in cash, and will simultaneously enter into a lease agreement with GLPI for the real estate assets associated with the casino at an annual rent of approximately $7.77m.
“Penn National is excited to acquire the operations of Hollywood Casino Perryville, a property we developed in 2010, which will allow us to re-enter the strong Maryland gaming market and add a twentieth gaming jurisdiction to our leading nationwide footprint,” said Penn National president and CEO Jay Snowden.
“In addition, with the recent approval of sports betting through the overwhelming passage of Question 2 on Election Day, Maryland is expected to soon become a significant retail and mobile sports betting market. As such, this acquisition provides another opportunity to expand our unique omni-channel platform with a Barstool-branded retail sportsbook and mobile app.”
The deal is expected to close in mid-2021, subject to the approval of the Maryland Lottery and Gaming Control Commission and other customary closing conditions.
Shares in Penn National Gaming Inc. (NSQ:PENN) closed 5.16 per cent higher at $83.09 per share in New York Tuesday, just off their new 52-week high of $84.49 per share set on 14 December.