The bet is $1 billion dollar. This is what Penn National Gaming shall be giving away to acquire the Greektown Casino. The deal has been affirmative and definitely agreed by mutual parties. Today, it is known to be granted very soon. You might even start seeing changes the next time you visit this place.
The idea comes from a long-standing interest of Penn to expand its market share. Detroit is supposedly now in an exciting adventure with a sheer change in policies and billions of dollars of investment in the city. The investment is into infrastructure, redevelopment, commercial and entertainment hubs, cultural centers and more. All this is driving new residents and businesses in this region. The downtown area is slowly seeing action from lots of investors and business magnets. Thus, casinos and gambling facilities are not going to stay back. Penn National is surely trying to get into the action. Thus, they decided to move ahead with this acquisition. They are also interested in collaborating with JACK Entertainment and VICI for a seamless transition of employees, vendors, and local government and regulators. So, what do we know more about this acquisition?
It is known that Penn National will enter into a triple-net lease agreement with VICI Properties Inc. which currently own the Greektown Casino facility. The figures show that an annual rent of approximately $55.6 million will be charged for a period of 15 years. There will be a triple net lease, meaning it will have to be renewed every 5 years. This is all planned so far and it is expected to make some changes in the games we see.
Penn National’s Chief Executive Officer, Timothy Wilmott was quoted saying that this facility is located in a strategic location in the nation’s largest regional gaming markets. The well-positioned casino is a dire need for Penn to expand their operations and market base. They want to diversify their operations and this supposedly the right fit for their needs. It will be left to see the impact and implications this acquisition is bringing forward, but as of now 15 years it is.
The transaction is full of debts
It is stated that the whole transaction has been managed by cash on hand and debt. On October 18th, they just completed the acquisition of Pinnacle Entertainment and are going strong. They also went late in the quarter to close Margaritaville Resort Casino’s revenue. Thus, they expect to complete their target debt within a range of 12 to 18 months.
What is Greektown Casino?
For those who are not aware, this was opened in 2000 and has been operational on a huge 2,000 sq feet area. It holds approximately 2,700 gaming machines. This is huge. Further, you have restaurants, poker room, 60 table games, seven fast-food casual stalls, four bars and one sole coffee shop too. The whole place is bustling with energy from the moment you set your foot into it. To cater to all these they employ more than 1700 staff. They are also partnered with over 20 restaurants to offer to dine to their guests. This is a huge success for Penn.
About Penn National Gaming
They shall have over 41 facilities in 19 jurisdictions with the completion of this acquisition. They are pretty excited about their executive’s speech. Of course, there is a luxury high rise hotel owning 14,000 sq feet alone which offers space for events, catering and other functions.
So far, Penn Nation Gaming has over 49,000 gaming machines in all and over 12,00 table games in all its facilities included. Penn Interactive Games are going to make it real big will all these acquisitions. The Michigan Gaming Control Board has awarded this acquisition with favor. What is there to see is how this going change the handling and operations as it is now is? So far, Penn has shown interest in ownership of racing facilities, video gaming terminals and slot machine entertainment operations in the market. Their aim is to occupy as much as possible.
In all, Penn has made its motive clear and distinct. In mid-2019, this transaction is supposed to be cleared and completed.