Penn Entertainment announced plans Monday to invest about $195 million to relocate its Boomtown Casino and Hotel New Orleans riverboat operations to a new landside property on adjacent land and rename the property Hollywood Casino New Orleans.
The proposed construction of a land-based casino is pending regulatory approval by the Louisiana Gaming Control Board (LGCB). If approved, the casino is expected to open in 2029 and will include approximately 140,000 square feet of new development.
“This investment reflects our disciplined approach to capital allocation, prioritizing organic growth opportunities that build on our operational strengths and are expected to deliver compelling returns,” Penn CEO and President Jay Snowden said in a statement.
The new Hollywood Casino New Orleans represents the company’s fourth landslide move in recent years, following the recent openings of Hollywood Casino Aurora and Hollywood Casino Jolliet in Illinois and the expected opening of Hollywood Casino Council Bluffs in Iowa in 2028.
“As with our previous relocating, we expect our new facility to enhance the customer experience and strengthen the property’s competitive position in the New Orleans market,” said Snowden.
Penn expects to finance the project with cash on hand, but may also access its balance sheet or other sources of liquidity.
Penn’s announced plans of an incremental project was “somewhat telegraphed” on its second quarter earnings call, but the property and scope of the project were not known until Monday, Citizens analyst Jordan Bender said in a research note.
“While external M&A could be on the table, Penn has shifted its focus toward investing capital in low-hanging fruit across its portfolio,” Bender wrote. “Recent land-side moves, both by Penn and its competitors, suggest these investments can generate attractive returns by providing consumers with more modern and upgraded facilities compared with older, rundown riverboats.”
In 2018, former Governor John Bell Edwards signed Senate Bill 316 into law that allows riverboat casinos to move onto land, as long as they remain within 1,200 feet and can demonstrate economic development.
The Louisiana Riverboat Economic Development and Gaming Control Act of 1991 allowed a maximum of 15 riverboat casinos. State law was amended in 1992 to allow the construction of one land-based casino in downtown New Orleans.
In an email Monday, the LGCB confirmed it had approved requests to relocate gaming operators from riverboat gaming vessels to riverboat land-side facilities for five licensees.
They are: St. Charles Gaming Company d/b/a Horseshoe Lake Charles, Louisiana Casino Cruises d/b/a The Queen Baton Rouge, Treasure Chest Casino d/b/a Treasure Chest Casino, Louisiana Riverboat Gaming Company d/b/a Live! Casino & Hotel Louisiana, and Catfish Queen d/b/a Bally’s Baton Rouge.
