Penn National Gaming (PNG) has entered into the Maryland Gambling market. It is expected that the state would legalize sports betting pretty soon.
PNG has announced the deal with Real Estate Investment Trust (REIT) Gaming & Leisure Properties Inc (GLPI). It has acquired the operations of Hollywood Casino Perryville in Maryland City. The cash deal of $31.1mn is expected to be closed in mid-2021.
The Perryville property was the first casino to open in Maryland in 2010, with PNG at the helm. However, PNG handed over the operation to GLPI in 2013 after corporate restructuring and spin off the real estate into GLPI. However, the parties now agreed to deal with the PNG option to acquire Perryville’s operations at a future date.
As per the new agreement, PNG will pay an initial annual rent of $7.77mn for the Perryville property. The new lease will run for an initial 15-year term.
This would ensure PNG has now a presence in 20 US States.
Maryland has overwhelmingly approved Maryland a ballot referendum to legalize betting. However, the state politicians will first have to craft legalization, and the Maryland Lottery and Gaming Control Commission will develop the regulations.
Jay Snowden, CEO of PNG said that Maryland has the potential to become significant retail and mobile sports betting market. The Barstool of PNG will compete with BetMGM, BetAmerica, William Hill, and so on.
GLPI has also announced the plan to sell Hollywood Casino Baton Rouge (HCBR) to Casino Queen Holding Company for $28.2mn. It will also have an annual rent lease agreement of $21.4mn for both HCBR and DraftKings at Casino Queen Property.
Casino Queen property entered into a naming rights deal with DraftKings.
Inspirational Link: https://calvinayre.com/2020/12/15/casino/penn-national-buys-maryland-hollywood-perryville-casino-operations/
