WYOMISSING, Pa.--(BUSINESS WIRE)--Penn National Gaming, Inc. (NASDAQ:PENN) today formally withdrew its proposal for a $480 million Hollywood Casino Philadelphia at 700 Packer Avenue in the City's Sports and Entertainment District, which has been pending with the Pennsylvania Gaming Control Board (PGCB) since November 2012.
"A contributing factor in our decision to withdraw our proposal was the City of Philadelphia's vocal support for a Center City casino location, despite the fact that two-thirds of the profits from our proposed casino were dedicated to the City's education and pension fund liabilities,” said Timothy J. Wilmott, President and CEO of Penn National Gaming. “The market potential in Philadelphia is less today then when we first applied, as a result of the ongoing gaming saturation in the mid-Atlantic region, as well as continued softness in the economy. Nevertheless, we would like to sincerely thank the PGCB for their careful consideration of our proposal.
"While we're disappointed to be withdrawing from Philadelphia, we're fortunate to still have one of the deepest development pipelines in the gaming industry," said Wilmott. Construction is underway on the $225 million Plainridge Park Casino in Plainville, Massachusetts, which is expected to open in June 2015. The Company is also constructing a $360 million gaming and entertainment resort for the Jamul Indian Tribe on its reservation near San Diego, California, which will be managed by Penn National Gaming. More immediately, the Company plans to open two new racing and gaming facilities in Dayton and Austintown, Ohio later this Summer and early Fall respectively. Finally, Penn National Gaming is currently pursuing a $750 million gaming and entertainment project in New York's Hudson Valley-Catskills Region with its joint venture partner, The Cordish Companies. “Our withdrawal from Philadelphia today will allow us to focus our resources on these higher return projects for our shareholders,” concluded Wilmott.
About Penn National Gaming
Penn National Gaming, through its subsidiaries, owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates twenty-seven facilities in eighteen jurisdictions, including Florida, Illinois, Indiana, Iowa, Kansas, Maine, Massachusetts, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn National's operated facilities feature approximately 31,000 gaming machines, 800 table games and 2,900 hotel rooms.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identified by the use of forward looking terminology such as “expects,” “believes,” “estimates,” “intends,” “may,” “will,” “should,” or “anticipates,” or the negative or other variation of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Such forward looking statements are inherently subject to risks, uncertainties and assumptions about Penn National Gaming and its subsidiaries, including (i) with respect to our project in Massachusetts, risks related to the ultimate location of the various other gaming facilities in Massachusetts, the upcoming referendum to repeal the enabling legislation and litigation challenging the award of the category two license, (ii) with respect to our proposed project near San Diego, particular risks associated with financing a project of this type, sovereign immunity, local opposition (including several pending lawsuits), and building a complex project on a relatively small parcel, (iii) with respect to our projects in Ohio, the ongoing appeal by the Ohio Roundtable addressing the legality of video lottery terminals in Ohio and litigation against the Ohio Racing Commission concerning opposition to relocating the company’s Toledo racetrack to the Dayton area; and (iv) with respect to our proposal in New York, risks related to our ability to obtain local support for the project. Accordingly, any forward looking statements are qualified in their entirety by reference to the factors described in Penn National Gaming’s Annual Report on Form 10-K for the year ended December 31, 2013, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the Securities and Exchange Commission. All subsequent written and oral forward looking statements attributable to Penn National Gaming or persons acting on the Company’s behalf are expressly qualified in their entirety by the cautionary statements included in this press release. Penn National Gaming undertakes no obligation to publicly update or revise any forward looking statements contained or incorporated by reference herein, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.