PENN Entertainment to Open New Hollywood Casino in Iowa
PENN Entertainment, Inc. is set to revolutionize the Council Bluffs gambling landscape with an ambitious project valued between $180 million and $200 million. This initiative involves relocating its Ameristar Casino Hotel Council Bluffs riverboat operations to a new, state-of-the-art land-based facility to be rebranded as Hollywood Casino Council Bluffs.
Regulatory Approval and Strategic Partnerships
The Iowa Racing and Gaming Commission recently approved this relocation as part of a comprehensive 15-year extension of Ameristar’s collaboration with the Iowa West Racing Association, a nonprofit Qualified Sponsoring Organization (QSO) licensed for gaming operations. This decision underscores a significant commitment to enhancing Iowa’s gaming environment.
Todd George, Executive Vice President of Operations at PENN, expressed his enthusiasm: "We are pleased to add another landside relocation to our pipeline of development projects. This project will enhance the quality and efficiency of our Council Bluffs location and significantly bolster the property’s competitive standing in the Omaha market."
Features of Hollywood Casino Council Bluffs
The newly envisioned Hollywood Casino Council Bluffs aims to encapsulate approximately 125,000 square feet of cutting-edge development, featuring:
- Gaming Space: Around 58,000 square feet dedicated to an exhilarating gaming experience.
- Employment Opportunities: The facility will create over 1,000 jobs, all on a single floor, optimizing operational efficiency.
- Amenities: It will also house the existing ESPN BET sportsbook, a 160-room hotel, and a variety of dining options.
This new endeavor illustrates PENN’s dedication to merging premier retail operations with its diverse interactive and media offerings, leveraging access to a robust database of over 32 million PENN Play members.
Transition from Ameristar Riverboat Casino
As the new Hollywood Casino Council Bluffs prepares for its grand opening, the existing Ameristar Casino Hotel Council Bluffs riverboat casino will be vacated. For nearly three decades, this riverboat has served as a cornerstone of the local entertainment scene, generating significant employment and contributing millions to community initiatives. Brenda Mainwaring, President & CEO of the Iowa West Racing Association, shared her excitement for this pivotal transition: "PENN’s commitment to reinvesting in Council Bluffs is laudable, and we are grateful for our ongoing partnership."
Project Timeline and Financial Structure
Construction of the Hollywood Casino is projected to last between 18 to 24 months, pending the completion of design and permitting processes. Financing for the project will be secured from Gaming and Leisure Properties, Inc., potentially offering up to $150 million at a 7.10% cap rate. This arrangement can be structured as either rental payments or a pre-payable five-year term loan, demonstrating PENN’s strategic financial planning.
Conclusion
The transition from riverboat to land-based casino not only signals PENN’s commitment to enhancing the gaming experience in Iowa but also sets a precedent for future developments in the gambling industry. With its focus on customer engagement, superior amenities, and community support, the Hollywood Casino Council Bluffs is poised to become a prominent destination for entertainment and gaming, reinforcing the region’s economic vitality and appeal.
By implementing these strategic enhancements, PENN Entertainment is not just reshaping its competitive landscape; it is redefining what a modern casino experience looks like, ensuring that guests engage with the best that the industry has to offer.
