PENN Entertainment has revealed plans to transform its Ameristar riverboat casino in Council Bluffs, Iowa, into a land-based casino.
The transformation will see the Ameristar Casino Hotel Council Bluffs renamed to Hollywood Casino Council Bluffs, with the move to a land-based venue expected to cost between $180 million and $200 million.
The project, which has been approved by the Iowa Racing and Gaming Commission, will be financed in partnership with Gaming and Leisure Properties, which is providing up to $150 million for the project. PENN Entertainment is entitled to structure this funding either as rent or a five-year term loan, repayable at any point without penalty.
The 125,000 square foot land-based venue will feature 58,000 square feet of gaming space and over 1,000 gaming positions on one level.
The venue will take between 18 to 24 months to construct, with building work starting once the design and permitting process has been completed. When the project has been completed, the riverboat facility will be closed.
“We are pleased to add another landside relocation to our pipeline of development projects,” said Todd George, PENN Entertainment’s VP of operations. “This project will enhance the quality and efficiency of our Council Bluffs location and significantly improve the property’s competitive positioning in the greater Omaha market.
“PENN’s diversified portfolio of casino properties is core to our omni-channel approach to entertainment, which combines our best-in-class retail operations and a database of more than 32 million PENN Play members with our robust interactive and media footprint. We thank the Iowa Racing and Gaming Commission for their approval today and are grateful for the continued collaboration with our partners at the Iowa West Racing Association.”
Brenda Mainwaring, president & CEO of the Iowa West Racing Association, commented: “We are thrilled with the exciting development plans for the new Hollywood Casino Council Bluffs.
“For nearly thirty years, the Ameristar riverboat has been providing not only dining and entertainment, but thousands of jobs and millions of dollars in support of our community. PENN’s commitment to reinvesting in Council Bluffs is laudable and we are grateful for our ongoing partnership.”
Shares in PENN Entertainment Inc (NASDAQ:PENN) closed 0.33 per cent lower at $15.15 per share in New York Thursday.