PENN Entertainment has announced plans to transition its riverboat operations in Council Bluffs, Iowa, to a new land-based casino facility. The proposed development, which will rebrand the current Ameristar Casino Hotel Council Bluffs as Hollywood Casino Council Bluffs, is estimated to cost between $180 million and $200 million.
The initiative received approval from the Iowa Racing and Gaming Commission, alongside a 15-year extension of PENN’s partnership with the Iowa West Racing Association, the region’s nonprofit Qualified Sponsoring Organization (QSO). All commercial casino operators in Iowa are required to operate under a QSO license.
The proposed Hollywood Casino Council Bluffs is expected to comprise approximately 125,000 square feet, with around 58,000 square feet dedicated to gaming on a single level. It will include over 1,000 gaming positions and will integrate with the existing property’s hotel, dining amenities, and ESPN BET-branded sportsbook. The current gaming operation, spread over three levels aboard the Ameristar riverboat, will be vacated once the new facility opens.
Construction is projected to span 18 to 24 months, following the completion of design and permitting phases. PENN Entertainment has the option to finance up to $150 million of the project through Gaming and Leisure Properties, Inc. (GLPI), under terms that include a 7.10% cap rate, either as rent or a five-year loan with no prepayment penalty.
This move continues a trend within the U.S. gaming industry of relocating aging riverboat casinos to modern, land-based facilities to improve customer experience and operational efficiency.
“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. We thank the Iowa Racing and Gaming Commission for their approval today and are grateful for the continued collaboration with our partners at the Iowa West Racing Association.”
“We are thrilled with the exciting development plans for the new Hollywood Casino Council Bluffs,” said Brenda Mainwaring, President & CEO of the Iowa West Racing Association. “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. PENN’s commitment to reinvesting in Council Bluffs is laudable and we are grateful for our ongoing partnership.”
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