Penn National Gaming Withdraws Bid for Casino License in Philadelphia
June 27 2014 - 3:00PM
Business Wire
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 Gaming
Penn 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.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements can be identified by the use of forward
looking terminology such as “expects,” “believes,” “estimates,”
“intends,” “may,” “will,” “should,” or “anticipates,” or the
negative or other variation of these or similar words, or by
discussions of future events, strategies or risks and
uncertainties. Such forward looking statements are inherently
subject to risks, uncertainties and assumptions about Penn National
Gaming and its subsidiaries, including (i) with respect to our
project in Massachusetts, risks related to the ultimate location of
the various other gaming facilities in Massachusetts, the upcoming
referendum to repeal the enabling legislation and litigation
challenging the award of the category two license, (ii) with
respect to our proposed project near San Diego, particular risks
associated with financing a project of this type, sovereign
immunity, local opposition (including several pending lawsuits),
and building a complex project on a relatively small parcel, (iii)
with respect to our projects in Ohio, the ongoing appeal by the
Ohio Roundtable addressing the legality of video lottery terminals
in Ohio and litigation against the Ohio Racing Commission
concerning opposition to relocating the company’s Toledo racetrack
to the Dayton area; and (iv) with respect to our proposal in New
York, risks related to our ability to obtain local support for the
project. Accordingly, any forward looking statements are qualified
in their entirety by reference to the factors described in Penn
National Gaming’s Annual Report on Form 10-K for the year ended
December 31, 2013, subsequent Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K as filed with the Securities and
Exchange Commission. All subsequent written and oral forward
looking statements attributable to Penn National Gaming or persons
acting on the Company’s behalf are expressly qualified in their
entirety by the cautionary statements included in this press
release. Penn National Gaming undertakes no obligation to publicly
update or revise any forward looking statements contained or
incorporated by reference herein, whether as a result of new
information, future events or otherwise, except as required by law.
In light of these risks, uncertainties and assumptions, the
forward-looking events discussed in this press release may not
occur.
Penn National Gaming, Inc.Eric Schippers, 610-378-8321Sr. Vice
President, Public Affairs
PENN Entertainment (NASDAQ:PENN)
Historical Stock Chart
From Apr 2024 to May 2024
PENN Entertainment (NASDAQ:PENN)
Historical Stock Chart
From May 2023 to May 2024