Penn National Advances Lawrence County Project
WYOMISSING, Pa.-- Penn National Gaming, Inc. announced Friday that it has joined with Endeka Entertainment LP to submit a proposal to the Pennsylvania Gaming Control Board for the development of a $225 million racing and gaming facility in Mahoning Township, Pa. The racino would be built just east of the Ohio line near the intersection of State Route 551 and State Route 422 in Lawrence County.
The announcement comes one day after Penn National broke ground (READ STORY) for its $125 million racino in nearby Austintown Township, Ohio. That project, the Hollywood at Mahoning Valley Race Course, will feature thoroughbred racing and a video lottery terminal with 1,500 slot machines.
The proposed Lawrence Downs Casino and Racing Resort will feature a new harness racing facility; 1,250 slot machines at opening with capacity for 1,500; 40 live table games and 10 poker tables; a variety of food and beverage options; and surface parking for 2,000 vehicles.
Pursuant to the terms of the agreements, Penn National will provide the $50 million license fee bond and the company will fund $15 million through a loan. The company will also acquire a warrant to purchase a one third ownership interest in the business. Penn National will develop and manage the project.
Following construction, the parties anticipate that Gaming and Leisure Properties Inc., the real estate investment trust that, will be publicly traded and hold substantially all of Penn National’s real property assets. Following the proposed separation of the company’s operating assets from its real property assets, the REIT will purchase the facility and lease it back to the owner.
“Endeka Entertainment is pleased to partner on this project with Penn National Gaming, the nation’s leading racing and gaming company,” said Manuel Stamatakis, the initial managing general partner of Endeka, which is based in Wayne, Pa.. “We are particularly pleased to bring this economic development project to Lawrence County as it will generate a significant number of new local jobs and other benefits.”
“With 11 wholly owned or joint venture pari-mutuel racing facilities, Penn National owns the most racing facilities of any operator in North America. The company has a long-standing commitment to the growth of horseracing in Pennsylvania and the proposed Lawrence Downs Casino and Racing Resort is a clear indication of our belief in the industry’s future,” said Tim Wilmott, president and COO of Penn National Gaming. “We look forward to working with Manny Stamatakis and the principals at Endeka Entertainment to bring the excitement of world-class harness racing and first-class gaming entertainment to Mahoning Township and its surrounding communities in western Pennsylvania.”
Penn National Gaming operates 29 facilities in 18 states and the province of Ontario.
SOURCE: Penn National Gaming Inc.
Published by The Business Journal, Youngstown, Ohio.
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