PENN Entertainment has announced plans to invest $180 to $200 million to move its Ameristar Casino Hotel Council Bluffs in Iowa from a riverboat to a new land-based facility. The upcoming property will be renamed Hollywood Casino Council Bluffs.
The Iowa Racing and Gaming Commission approved the project Thursday, along with a 15-year extension of PENN’s partnership with the Iowa West Racing Association, the nonprofit Qualified Sponsoring Organization (QSO) required for gaming operations in the state.
The new facility will feature 125,000 square feet of total development, including 58,000 square feet of gaming space and more than 1,000 gaming positions on a single level. The new facility will complement the existing ESPN BET sportsbook, 160-room hotel, and dining options in the landside portion of the current infrastructure. The riverboat casino will close when the new building opens.
“We are pleased to add another landside relocation to our pipeline of development projects,” said Todd George, Executive Vice President of Operations for PENN. “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.”
“PENN’s diversified portfolio of casino properties is core to our omni-channel approach to entertainment, which combines our best-in-class retail operations and a database of more than 32 million PENN Play members with our robust interactive and media footprint.”
Brenda Mainwaring, President and CEO of the Iowa West Racing Association, expressed enthusiasm about the project, calling it a major reinvestment in the Council Bluffs community.
“For nearly thirty 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,” she said. “PENN’s commitment to reinvesting in Council Bluffs is laudable, and we are grateful for our ongoing partnership.”
Construction is expected to take 18 to 24 months after final approvals. PENN can finance up to $150 million of the project through Gaming and Leisure Properties, Inc. at a 7.10% cap rate, with flexible rent or loan options.
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