Churchill Downs Inc. is set to become a dominant force in both Virginia horse racing and historical horse racing, thanks to a multi-billion-dollar agreement.
Today, it was announced by officials that Churchill Downs Inc. (CDI) has entered into an agreement to acquire the majority of assets belonging to Peninsula Pacific Entertainment LLC (P2E) for a total sum of approximately $2.5 billion.
Colonial Downs Racetrack and Rosie’s Gaming Emporiums in VA are owned and operated by PPE.
The blockbuster deal will primarily affect Virginia, but it will also encompass properties in Iowa and New York.
If all the necessary parties, including gaming and racing commissions, give their approval, the deal is anticipated to be finalized by the end of 2022.
Churchill Downs Inc. big on HHR
CDI will acquire ownership of Colonial Downs through the recently announced deal. Situated in New Kent, this Thoroughbred racing facility is renowned for hosting the prestigious Virginia Derby.
The renowned track, which gained popularity in 1997, quickly became a significant draw for horse racing enthusiasts on the East Coast. However, from 2015 to 2018, the track remained abandoned and devoid of structured racing due to a series of disputes.
In 2019, the summer racing schedule made a comeback with the reopening of the track and the introduction of Rosie’s Gaming Emporiums. This was made possible due to the legalization of historical horse racing (HHR), allowing Peninsula Pacific Entertainment (P2E) to offer slot machine-like HHR games.
The HHR parlors can now be found in the following cities of Virginia:
- Collinsville
- Dumfries
- Emporia (planned for future)
- Hampton
- New Kent
- Richmond
- Vinton
“The deal was described by Bill Carstanjen, CEO of Churchill Downs Inc.”
P2E has displayed outstanding proficiency in the development and management of this asset portfolio. We are thrilled to acquire it and have strategic plans in place to foster its growth in the coming years.
The Rosie’s establishments in Virginia collectively possess approximately 2,700 HHR machines. Although these machines do not primarily focus on horse racing, they have been adopted by the industry as a means to prevent its decline, particularly amidst the diminishing interest in horse racing, especially evident during the pandemic.
CDI will have the chance to establish a maximum of five new Rosie’s locations, alongside the current ones.
Don’t forget about The Rose and Richmond casino
Churchill Downs Inc. is a company that operates in the online wagering and gaming entertainment industry. Its most famous event is the renowned Kentucky Derby held at Churchill Downs. Additionally, the company owns TwinSpires, an online platform dedicated to horse racing bets.
CDI will additionally obtain as part of the PPE transaction:
- All assets of del Lago Resort & Casino located in Waterloo, New York.
- The casino operations at Hard Rock Hotel & Casino in Sioux City, Iowa.
In addition to that, the agreement includes a forthcoming property in Virginia called The Rose gaming resort, valued at $400 million. This expansive establishment, also known as the “Dumfries Project,” is set to offer a plethora of amenities such as HHR gaming, dining options, entertainment venues, green areas, and various attractions. Its anticipated opening is scheduled for 2025.
P2E’s partnership with Urban One, a media conglomerate based in Maryland, is also being assumed by CDI. In the previous year, Urban One and PPE were unsuccessful in convincing Richmond voters to approve the $565 million ONE Casino + Resort in the capital of Virginia.
There is a possibility that the casino referendum will be reconsidered in the 2022 election, giving it another chance to pass. If it does succeed, CDI will participate in the gaming operations of the Richmond casino, providing classic casino games like blackjack, roulette, poker, and slot machines, excluding historical horse racing (HHR) games.
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