Pinnacle Entertainment Acquires River Downs Racetrack

Pinnacle Entertainment

has announced its acquisition of River Downs Racetrack in Cincinnati, Ohio for $45 million. In a report sent to clients, Jefferies writes, "The acquisition comes with the anticipation that video lottery terminals (VLTs) at racetracks will be legalized, thereby allowing PNK to establish a position in the Cincinnati gaming market. The company believes that River Downs racetrack would serve as a good compliment to their Belterra casino, which is located in Indiana but attracts patrons from the surrounding metropolitan area, which includes Cincinnati." Jefferies maintains its Buy rating on PNK. PNK closed Friday at $13.37.