Penn National Gaming and VICI Properties acquire casino resort
Two American entertainment companies, Penn National Gaming and VICI Properties, have announced an agreement to jointly purchase the Margaritaville Resort Casino in Bossier City, Louisiana, for a combined sum of $376 million.
The purchase involves two distinct transactions: VICI has acquired the land and real estate assets for $261 million, while Penn National Gaming has taken over the operating assets of the luxury resort for $115 million.
Upon completion of the deals, Penn National Gaming will enter into a three-tiered lease agreement with VICI for the casino operations. This will result in an estimated annual rent of approximately $23.2 million, with a contract duration of at least 15 years, including renewal options for four five-year periods. The leased property covers around 30 hectares of land, of which the Margaritaville Resort parking lot holds 1,500 parking spaces.
To provide some context, VICI Properties is a real estate investment trust established in 2016 and a spin-off of the Las Vegas-based market giant Caesars Entertainment. The REIT focuses on casino properties, owning 21 casinos across the United States, including renowned establishments like Caesars Palace in Las Vegas and Caesars Atlantic City. Other assets include racetracks and four championship golf courses.
In reference to the strategic partnership, John Payne, President and COO of VICI Properties, termed the acquisition "a major milestone," considering the company's short history (founded in 2016). He also praised the collaborative relationship with Penn National Gaming, stating:
"This deal marks another step towards diversifying our tenant base while maintaining a first-class portfolio of properties. I've had a personal experience working with senior executives at Penn National, and we're excited to develop a long-term, mutually beneficial partnership with this world-class organization."
This acquisition further strengthens VICI's position in the Louisiana market, particularly in the core cities of Bossier and Shreveport. The Margaritaville Resort Casino boasts a modern design, making it the most up-to-date resort complex in the area. Payne added that their ultimate goal is to "continuously deliver top-notch casino and entertainment experiences for customers, employees, and the local community."
Opened in 2013, the Margaritaville Resort Casino is a prominent fixture in Louisiana, with a population of approximately 4.7 million. The complex houses 395 luxury hotel suites, several Michelin-starred restaurants, a 1,000-seat theater, and, of course, casinos featuring numerous gambling options over 26,500 square meters. Attracting approximately 1,215 slot machines and 50 tables, the resort appeals to diverse gaming preferences.
Timothy J. Wilmott, CEO of Penn National Gaming, expressed his satisfaction with the deal, highlighting the benefits for shareholders and their "integration and distribution strategies." He stated:
"Margaritaville is an appealing addition to our national gaming platform, a move that's in line with our goal of enhancing the value of Penn National for our investors. This agreement increases our operational base and free cash flow, while paving the way for world-class synergies through our partnership with VICI."
This is the second joint casino acquisition between Penn and VICI since November. The two companies acquired the prestigious Greektown Casino in Detroit for approximately $1 billion. Penn assumed responsibility for the casino's operating assets for $300 million, while VICI acquired the real estate assets for $700 million. The agreement includes a 15-year lease arrangement, specifying an annual rent of $55.6 million. Nevertheless, final approval from Michigan Gaming Control is pending; anticipated approval is set for mid-2019.
Since last year, Penn National Gaming has been expanding its casino empire, with notable additions such as a $2.8 billion acquisition of Pinnacle Entertainment. Now operating over 40 casinos in 18 states, including gambling capitals like Nevada, Mississippi, and New Jersey, the company's market influence is prominent.
Read also:
- The 15-year-old murderer admits to fatally shooting Francesco, who was 14.
- Schalke's pressure has affected Terodde.
- Columbia University Faces Possible Expulsion Following Demonstrations
- Football turmoil in Munich: Last-minute penalty stuns Bayern
Source: www.onlinecasinosdeutschland.com
