The Louisville-based gaming company has entered into a definitive purchase agreement to bring P2E’s properties in Virginia and New York, as well as the operation of its Sioux City casino, under the CDI umbrella.
Ownership of the Colonial Downs Racetrack in New Kent County, as well as six historical racing entertainment venues across Virginia, will transfer to Churchill.
“The transaction significantly expands the geographic diversity of CDI’s live and historical racing entertainment venues and reinforces CDI’s role as a national leader in historical horseracing,” stated Churchill Downs.
CDI will also acquire the del Lago Resort & Casino in Waterloo, New York. This is a 96,000-square-foot gaming establishment with approximately 1,700 slot machines, 80 table games and a 205-room hotel, plus a 6,000-square-foot sportsbook area, among other amenities.
Finally, Churchill will acquire the operations of Hard Rock Hotel & Casino in Sioux City, Iowa, a 45,000-square-foot facility with 39 slot machines, 20 table games and a 54-room hotel.
P2E is expected to reach a definitive agreement to sell the real property associated with Hard Rock Sioux City to a third party, and CDI will acquire the operating company, leasing the Sioux City property from that third party.
If P2E is unsuccessful in reaching an agreement with a third party, said Churchill, the Sioux City property will be included in CDI’s acquisition, raising the total consideration to $2.75bn.
Churchill added: “The deal is dependent on usual and customary closing conditions, including the company obtaining approvals from the Virginia Racing Commission, the New York State Gaming Commission and the Iowa Racing and Gaming Commission.”
The transaction is expected to close by the end of 2022.
