Facing new competition from neighboring Nebraska, Penn Entertainment has announced it will move its Council Bluffs casino operations onshore. The Ameristar Casino Hotel Council Bluffs riverboat will be supplanted by the proposed Hollywood Casino Council Bluffs.
The move met with the approval of the Iowa Racing & Gaming Commission on April 24, when it voted in favor of the $180 million-$200 million project. The Commission also approved a 15-year extension of Penn’s partnership with the Iowa West Racing Association, a prerequisite for continued casino operation.
As much as $150 million of the project cost will be provided by Gaming & Leisure Properties. Once construction begins, completion is expected to take 18-24 months.
Deutsche Bank analyst Carlo Santarelli reacted within minutes, noting that comparable moves by Penn’s competitors “have produced very healthy returns.”
Santarelli added, “While somewhat defensive in nature, given the competition the asset has faced from Nebraska property openings, we view the move favorably, much like we view the continued focus on the core business favorably.”
In the case of Hollywood Council Bluffs, its new iteration will encompass 125,000 square feet, of which 58,000 will be devoted to the single-story gaming floor, superseding the tri-level casino on the riverboat, which will be retired.
Existing dining venues, the 160-room hotel, and the ESPN Bet-branded sportsbook will remain in their present state. Said Penn’s Executive Vice President of Operations Todd George, “This project will enhance the quality and efficiency of our Council Bluffs location and significantly improve the property’s competitive positioning in the greater Omaha market.”
Iowa West Racing Association CEO Brenda Mainwaring said, “For nearly 30 years, the Ameristar riverboat has been providing not only dining and entertainment, but thousands of jobs and millions of dollars in support of our community. Penn’s commitment to reinvesting in Council Bluffs is laudable and we are grateful for our ongoing partnership.”
