Penn National Gaming Secures Ohio Racing Commission Approval for the Relocation of Its Two Racetracks
WYOMISSING, Pa. & AUSTINTOWN, Ohio & DAYTON, Ohio--(BUSINESS WIRE)-- Penn National Gaming, Inc. (NAS: PENN) (the "Company") today announced that it has received approval from the Ohio Racing Commission for the relocation of Beulah Park in Columbus to Austintown in Mahoning Valley and the relocation of Raceway Park in Toledo to Dayton. Under the terms of the Company's prior agreement with the State of Ohio, Penn National will pay a $75 million relocation fee for each racetrack and a $50 million video lottery terminal ("VLT") license fee per facility. The Company plans to invest approximately $125 million in the construction of each new racetrack and VLT facility and expects both to open in 2014.
Pursuant to a resolution reached with the Ohio Racing Commission, Penn National will open its Hollywood at Mahoning Valley Race Course facility with seating capacity for 1,001 patrons with views of live racing. The new thoroughbred racing facility will be located on 184 acres in Austintown's Centrepointe Business Park. Hollywood at Dayton Raceway, a standardbred track, will be located on 125 acres in North Dayton on the site of an abandoned Delphi Automotive plant with seating capacity for 1,037 patrons with views of live racing. Plans for the Austintown and Dayton facilities include up to 1,500 VLTs, as well as restaurants, bars and other amenities at each facility. Penn National expects Both Hollywood at Mahoning Valley Race Course and Hollywood at Dayton Raceway to create approximately 1,000 direct and indirect jobs as well as approximately 1,000 construction jobs.
"We are extremely pleased to receive approval from the Ohio Racing Commission for our relocation plans and are thankful to the Commission for their efforts in reaching an agreement that allows us to immediately begin construction of the facilities in Austintown and Dayton which in turn will further strengthen the state's racing industry," said Tim Wilmott, President and COO of Penn National Gaming. "These two new racetrack and VLT facilities represent significant economic development projects for the state of Ohio and will create a substantial number of new jobs while further maximizing revenues for the state.
"Additionally, the Ohio Racing Commission today approved an agreement that will allow our Beulah Park facility in Columbus to host River Downs' spring race meet beginning on May 19. We believe this agreement also highlights Penn National's support of Ohio's racing industry and we are happy to work with River Downs to provide a place for their horsemen to continue their spring meet uninterrupted while their facility in Cincinnati moves forward with a substantial redevelopment of its own."
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates twenty-nine facilities in nineteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn National's operated facilities currently feature approximately 34,800 gaming machines, approximately 850 table games, 2,900 hotel rooms and approximately 1.6 million square feet of gaming floor space.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from expectations. Although Penn National Gaming, Inc. and its subsidiaries (collectively, the "Company" or "PENN") believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially from our expectations. Meaningful factors that could cause actual results to differ from expectations include favorable resolution of any related litigation, including the appeal by the Ohio Roundtable addressing the legality of video lottery terminals in Ohio; our ability to secure state and local permits and approvals necessary for construction; construction factors, including delays, unexpected remediation costs, local opposition and increased cost of labor and materials; our ability to reach agreements with the State of Ohio that memorialize our earlier Memorandum of Understanding, our ability to reach agreements with the thoroughbred and harness horseman in Ohio in connection with the proposed and other factors as discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. The Company does not intend to update publicly any forward-looking statements except as required by law.
Penn National Gaming, Inc.
William J. Clifford, 610-373-2400
Chief Financial Officer
Joseph N. Jaffoni, Richard Land
KEYWORDS: United States North America Ohio Pennsylvania
The article Penn National Gaming Secures Ohio Racing Commission Approval for the Relocation of Its Two Racetracks originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.