The deal will allow Penn to expand its gaming platform in Maryland, which will soon legalise sports betting.
US.- Casino operator Penn National Gaming has reached a deal to acquire Hollywood Casino Perryville in Maryland, ahead of the state’s anticipated legalisation of sports betting.
The $31.1m cash deal to acquire Hollywood’s operations was arranged with Gaming and Leisure Properties Inc. Penn will pay a yearly rent to the company of around $7.77m.
Through Hollywood Casino, Penn will be able to expand its gaming platform, which includes the Barstool-branded retail sportsbook and mobile app.
The deal is expected to close by mid-2021, subject to the approval of the Maryland Lottery and Gaming Control Commission.
In Maryland 66.2 per cent of voters came out in favour of sports betting in the November ballot, and the state is now waiting for the legislature to develop a regulatory framework.
While overall casino revenues in Maryland were down by 7.4 per cent year-on-year in November, Hollywood Casino was one of two properties to see a year-over-year increase in revenues.