More St Louis casinos for Penn after $2.8b Pinnacle buyout

St Louis casinos

Penn National Gaming casinosGambling giant Penn National Gaming has expanded its casino portfolio with the US $2.8 billion acquisition of Pinnacle Entertainment.

The sale brings two properties in the St Louis area under Penn’s management – Ameristar St Charles and River City Casino in Lemay.

Penn already operates Hollywood Casino St Louis in Maryland Heights and Argosy Casino Alton in Metro East.


According to regulatory filings, the deal included Penn offering 26.3 million shares of its stock and $1.25 billion in cash to stakeholders of Pinnacle.

To avoid any anti-trust issues, Penn agreed to offload four of Pinnacle’s casinos – including Ameristar St Charles – to Las Vegas-based Boyd Gaming.

Boyd made the $563.5 million buy and consolidated the purchase by entering into a master lease agreement with Penn, who still owns the real estate attached to the project.

In a related development, Reno’s Eldorado Resorts completed its planned acquisition of Tropicana Entertainment on October 1.

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