Penn National Gaming, Inc. (NASDAQ:PENN) today formally withdrew its proposal for a $480 million Hollywood Casino Philadelphia at 700 Packer Avenue in the City's Sports and Entertainment District, which has been pending with the Pennsylvania Gaming Control Board (PGCB) since November 2012.
"A contributing factor in our decision to withdraw our proposal was the City of Philadelphia's vocal support for a Center City casino location, despite the fact that two-thirds of the profits from our proposed casino were dedicated to the City's education and pension fund liabilities,” said Timothy J. Wilmott, President and CEO of Penn National Gaming. “The market potential in Philadelphia is less today then when we first applied, as a result of the ongoing gaming saturation in the mid-Atlantic region, as well as continued softness in the economy. Nevertheless, we would like to sincerely thank the PGCB for their careful consideration of our proposal.
"While we're disappointed to be withdrawing from Philadelphia, we're fortunate to still have one of the deepest development pipelines in the gaming industry," said Wilmott. Construction is underway on the $225 million Plainridge Park Casino in Plainville, Massachusetts, which is expected to open in June 2015. The Company is also constructing a $360 million gaming and entertainment resort for the Jamul Indian Tribe on its reservation near San Diego, California, which will be managed by Penn National Gaming. More immediately, the Company plans to open two new racing and gaming facilities in Dayton and Austintown, Ohio later this Summer and early Fall respectively. Finally, Penn National Gaming is currently pursuing a $750 million gaming and entertainment project in New York's Hudson Valley-Catskills Region with its joint venture partner, The Cordish Companies. “Our withdrawal from Philadelphia today will allow us to focus our resources on these higher return projects for our shareholders,” concluded Wilmott.
About Penn National GamingPenn National Gaming, through its subsidiaries, owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates twenty-seven facilities in eighteen jurisdictions, including Florida, Illinois, Indiana, Iowa, Kansas, Maine, Massachusetts, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn National's operated facilities feature approximately 31,000 gaming machines, 800 table games and 2,900 hotel rooms.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts