Churchill Downs Incorporated (CDI) is taking significant steps to broaden its presence in the gaming and equine racing sector. The corporation has reached an agreement valued at nearly $2.5 billion to purchase a majority stake in Peninsula Pacific Entertainment’s (P2E) holdings.
This purchase will provide Churchill Downs with a foothold in emerging markets, including Virginia and New York. The agreement encompasses P2E’s Colonial Downs Racetrack in New Kent County, Virginia, in addition to six off-track wagering venues within the state. Already a prominent entity in the horse racing industry, this acquisition solidifies Churchill Downs’ standing as a national powerhouse.
Beyond the Virginia properties, Churchill Downs will also assume control of del Lago Resort & Casino in Waterloo, New York. This represents a substantial addition to their portfolio, as del Lago is a sizable and prosperous casino featuring a hotel, dining establishments, and a sports betting facility.
Lastly, Churchill Downs will take over the management of the Hard Rock Hotel & Casino in Sioux City, Iowa. While smaller in scale compared to del Lago, it remains a valuable holding within an expanding market.
In summary, this constitutes a major acquisition for Churchill Downs, poised to significantly widen its scope and reinforce its position as a frontrunner in the gaming and horse racing sector.
Should Churchill Downs fail to secure a separate agreement for the P2E component, the Sioux City location will be absorbed into the CDI purchase arrangement. This inclusion would elevate the total deal worth to a substantial $2.75 billion.
CDI stressed that the agreement’s completion is contingent upon customary closing prerequisites. These include obtaining approvals from essential regulatory entities such as the Virginia Racing Commission, the New York State Gaming Commission, and the Iowa Racing and Gaming Commission.
The anticipated conclusion of this transaction is estimated to occur near the close of 2022.