Penn National Gaming Submits Separate Proposals for $160 Million Downtown Hollywood Casino Sioux City and $167 Million Hollywood Casino Siouxland in Woodbury County
Penn National Gaming, Inc. (NASDAQ: PENN) announced today that it has submitted to the Iowa Racing & Gaming Commission (IRGC) two proposals for a new gaming and entertainment destination in Woodbury County for its consideration. Each proposal represents a best-in-class approach to regional gaming and will maximize tourism and revenues for Woodbury County and the State of Iowa. While the proposals are similar in scope, the unique characteristics of each location will allow the IRGC to determine which type of facility would best serve the region and the State of Iowa.
The first proposal, Hollywood Casino Sioux City, would be built on a 10-acre site in the center of one of the prime areas that the Sioux City Planning Division has identified as a preferred casino zone. The 100,000 square-foot Hollywood Casino Sioux City will feature a 33,000 square-foot casino floor with 750 slot machines, 20 live table games and a 5-table poker room. The facility will include structured parking for 800 vehicles and a 300-space surface lot while allowing easy access from Sioux City Transit's local transportation options. Non-gaming dining and entertainment amenities include a fine-dining steakhouse, casual grille, casino bar and sports pub. Hollywood Casino Sioux City would also feature a 6,000 square-foot multi-purpose event center with a 500-seat concert venue. The master plan for the development contemplates a $40 million phase II expansion with a 150-guestroom hotel as well as space for an additional 50 slot machines, 5 table games, 5 new poker tables and additional food and beverage options.
The second proposal, Hollywood Casino Siouxland, with a $167 million projected cost, is similar in size and scope to the Hollywood Casino Sioux City downtown project, but would lie in Woodbury County south of Sioux City and would include a 150-room hotel as part of the Phase One construction. Both projects would bring meaningful employment and other economic activity to the greater Sioux City area including over 400 employees at the new facility.
The Greater Siouxland Improvement Association will serve as Penn National's qualified sponsoring organization and is comprised of an impressive group of local leaders and concerned constituents with a focused goal. The board members of Greater Siouxland bring an extended and impressive record of community service, integrity and dedication, as well as a wealth of fresh ideas on the needs of the community.
Peter Carlino, Chairman and Chief Executive Officer of Penn National Gaming, commented, “In carefully considering the needs and requirements of the local community and the goals of the IRGC, we believe each proposal represents the strongest option for Woodbury County and the State of Iowa. We are prepared to work immediately with the IRGC and other local leaders to develop whichever of these facilities is deemed to be the most attractive and beneficial to the city and state of Iowa. Given the number of proposed gaming projects in recent years that have not been completed, we believe the importance of the financial strength of the operator and our ability to deliver on the commitments we've made are critical distinguishing factors. Penn National requires no financing to move forward with our proposals and can fund either of these projects with cash flow from existing operations.
“We believe our Sioux City proposals are the best way forward for the community given our long-term record of operation in the community and proven track record of developing first-class gaming and entertainment resorts in urban locations including most recently Toledo and Columbus in Ohio. Our proposed facilities, if approved, will ensure the continued employment of our team at Argosy Sioux City and create 800 new construction jobs as well as 400 jobs at the facility upon opening within approximately 18 months following approval from the IRGC. Both of our proposals also allow Penn National to introduce Sioux City to our Hollywood brand, which invokes the glamour of 1930s' art deco Hollywood.
“Penn National's balance sheet and financial liquidity as well as our proven development record and ability to generate both strong employment and tax dollars are unmatched. We plan to develop either of these facilities, using funds from our existing operations and are ready to move as quickly as possible to ensure that the local community benefits immediately. The entire Penn National team looks forward to working with our local partner and the IGRC to move forward and bring this exciting new gaming and entertainment facility to Sioux City.”
The IRGC plans to make a decision submitted proposals on April 18, 2013.
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. The company presently operates twenty-nine facilities in nineteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn National's operated facilities currently feature approximately 36,800 gaming machines, approximately 850 table games, 2,900 hotel rooms and approximately 1.6 million square feet of gaming floor space.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from expectations. Although Penn National Gaming, Inc. and its subsidiaries (collectively, the “Company”) believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially from our expectations. Meaningful factors that could cause actual results to differ from expectations include, but are not limited to, risks related to the following: our ability to receive and maintain, or delays in obtaining, the regulatory approvals required to own, develop and/or operate our facilities, or other delays or impediments to completing our planned acquisitions or projects; the passage of state, federal or local legislation (including referenda) that would expand, restrict, further tax, prevent or negatively impact operations in or adjacent to the jurisdictions in which we do or seek to do business (such as a smoking ban at any of our facilities); the effects of local and national economic, credit, capital market, housing, and energy conditions on the economy in general and on the gaming and lodging industries in particular; the activities of our competitors and the emergence of new competitors (traditional and internet based); increases in the effective rate of taxation at any of our properties or at the corporate level; our expectations for the continued availability and cost of capital; the outcome of pending legal proceedings; changes in accounting standards; our dependence on key personnel; the impact of terrorism and other international hostilities; the impact of weather; and other factors as discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. The Company does not intend to update publicly any forward-looking statements except as required by law.
Penn National Gaming, Inc.
William J. Clifford, 610-373-2400
Chief Financial Officer
Joseph N. Jaffoni, Richard Land
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