Penn National Gaming Submits Proposal for $480 Million Hollywood Casino Philadelphia in the Heart of the City's Sports & Entertainment District
Penn National Gaming, Inc. (NASDAQ: PENN) announced today that it has submitted a proposal to the Pennsylvania Gaming Control Board (PGCB) for a new gaming and entertainment destination in Philadelphia. The Company believes this proposal represents a best-in-class approach to regional gaming that will boost local tourism and maximize revenues for Philadelphia and the Commonwealth of Pennsylvania. Headquartered in Pennsylvania, Penn National Gaming is the country's most active developer of new entertainment and gaming destinations, having opened six new facilities over the past five years across the country. Each facility was opened on time and on budget, each resulted in significant new local employment and tax revenue and Penn National is capable of immediately funding its Philadelphia proposal.
Penn National has held preliminary discussions with Congressman Robert Brady, State Senator Anthony Hardy Williams and Philadelphia City Councilman Kenyatta Johnson regarding the proposed Hollywood Casino at 700 Packer Avenue in South Philadelphia. By law, Penn can own no more than one third of the equity in the facility given its preexisting ownership of Hollywood Casino at Penn National Race Course. This presents an exciting opportunity for the City of Philadelphia or one of its designated entities who would benefit from Penn's proven management expertise, while maximizing the economic opportunity for the community. Alternatively, Penn is also evaluating the possibility of relocating the proposed Hollywood Casino facility to the 300 block of Packer Avenue in South Philadelphia on property currently owned by the Philadelphia Industrial Development Corporation, totaling nearly 27 acres. The Company anticipates a near term announcement on these plans.
Located in the heart of Philadelphia's sports and entertainment district – which includes Citizens Bank Park, the Wells Fargo Center and Lincoln Financial Field – Hollywood Casino Philadelphia would feature a 100,000 square-foot casino floor with 2,050 slot machines, 66 live table games and a 15-table poker room. Additionally, the new gaming and entertainment facility will include structured parking for 3,500 vehicles as well as an integrated bus arrival and waiting area. Non-gaming dining and entertainment amenities would include a fine-dining steakhouse, sports pub, casual grill, noodle bar, food court with four distinct outlets and casino bar as well as a 180-seat entertainment lounge which would host live acts. The master plan for the development contemplates a phase II expansion with a 500-guestroom hotel as well as space for an additional 1,000 slot machines, 40 table games, 5 poker tables, additional food and beverage options, and increased structured parking capacity.
Peter Carlino, Chairman and Chief Executive Officer of Penn National Gaming, commented, “We believe our proposed Hollywood Casino Philadelphia represents the best way forward for both the City of Philadelphia and the Commonwealth of Pennsylvania, and represents a careful consideration of the needs of the local community and the goals of the PGCB. Penn National has an established, long-term record of operation in the Commonwealth and a proven ability to deliver projects on time and on budget that generate attractive revenue and employment for our host communities. We believe our experience in developing first-class gaming and entertainment resorts in urban locations, including most recently Toledo and Columbus in Ohio and Kansas City, Kansas, will enable Penn to quickly deliver on the expectations set out by the PGCB.
“Furthermore, given the rising number of recent proposed gaming projects that have not been completed for financial reasons, we believe Penn National's financial strength and proven ability to complete projects on schedule make us the ideal operator to develop this new gaming and entertainment facility in Philadelphia. We require no additional financing to move forward with our proposal and can fully fund the development and construction of Hollywood Casino Philadelphia with cash flow from existing operations.
“Penn National's balance sheet strength, financial liquidity, successful development and operating record and ability to generate both strong long-term employment and growing tax revenues for our host communities are unmatched within the gaming industry. We plan to move quickly to develop this facility using funds from our existing operations in order to ensure that Philadelphia and the Commonwealth of Pennsylvania benefit immediately. The entire Penn National team looks forward to working with the PGCB to further enhance the heart of Philadelphia's sports and entertainment district with an exciting gaming and entertainment destination.”
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; our ability to secure state and local permits and approvals necessary for construction; construction factors, including delays, unexpected remediation costs, local opposition and increased cost of labor and materials; 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