This week Penn National Gaming revealed that they've completed their purchase of Pinnacle Entertainment to the tune of $2.8 billion.
The purchase was announced earlier this year and was approved by both groups of shareholders. The agreement gives Penn full control of Pinnacle assets, including casinos and racetracks. The deal is expected to begin generating positive financial impacts within a year of closing, as there will be more than $100 million in cost-saving consolidations that can take place.
With the completion of the deal, Penn National now holds 40 different betting facilities in the states of Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, and West Virginia. The move comes as multiple states begin working on legalizing and regulating sportsbetting, potentially opening another lucrative market for Penn to cash in on.
Commenting about the deal Penn National Gaming CEO Timothy Wilmott said, "Our acquisition of Pinnacle Entertainment marks a significant milestone in Penn National's 24-year history of growth as a public company, which has been predicated on our unwavering commitment to deliver exceptional entertainment to customers, support for the local communities where we operate and enhancement of value for our shareholders.
"With the expected incremental free cash flow to be generated from our expanded base of operations, we believe we are well positioned to reduce leverage, evaluate additional accretive strategic growth investments and opportunistically return capital to shareholders."