The racing and gaming powerhouse, Churchill Downs Incorporated, is significantly expanding its reach. They’ve agreed to purchase a majority stake in Peninsula Pacific Entertainment, also known as P2E, for a hefty sum of $2.5 billion. This positions Churchill Downs as the dominant force in Virginia racing, granting them control of the renowned Colonial Downs racetrack and its network of six off-track betting venues.
However, the acquisition doesn’t stop there. This agreement also provides them with ownership of the del Lago Resort & Casino in New York, a sprawling establishment boasting over 1,700 slot machines, 80 table games, and lodging accommodations. Additionally, they’re gaining possession of the Hard Rock Hotel & Casino in Sioux City, Iowa, celebrated for its vibrant gaming area and hotel.
This calculated maneuver by Churchill Downs reinforces their standing as a frontrunner in the horse racing industry and enables them to penetrate new markets through well-established casino holdings.
Winston Churchill disclosed that should P2E fail to reach an accord with an outside entity, the Sioux City assets will be incorporated into CDI’s purchase strategy, elevating the overall transaction to a substantial $2.75 billion. He further noted that customary completion prerequisites must be fulfilled, encompassing approval from the Virginia Racing Commission, the New York State Gaming Commission, and the Iowa Racing and Gaming Commission. Assuming a seamless process, the agreement is anticipated to conclude by late 2022.