Gaming & Leisure to buy Meadows casino for $465M

Bob Rittick, of Kennedy Township, Pa., plays the slots at the Meadows Racetrack & Casino. The facility, which opened yesterday in southwest Pennsylvania, has 1,738 slot machines.
Bob Rittick, of Kennedy Township, Pa., plays the slots at the Meadows Racetrack & Casino. The facility, which opened yesterday in southwest Pennsylvania, has 1,738 slot machines.
Posted: May 16, 2014

Gaming & Leisure Properties Inc. agreed to buy Meadows Racetrack & Casino, near Pittsburgh, from Cannery Casino Resorts L.L.C. for $465 million, the Wyomissing, Pa., company said.

Meadows, in Washington Township, is the second casino in Western Pennsylvania - where new Ohio casinos have cut into revenue - to come under a sales agreement. The sale of MTR Gaming Group Inc., which owns Presque Isle Downs & Casino in Erie, is scheduled for completion in the second half of this year.

Meadows opened in 2007 and has 3,317 slot machines, 61 table games and 14 poker tables. Cannery valued the property at $535 million in a 2011 license renewal presentation.

Gamblers's losses at Meadows totaled $274 million in fiscal 2013. The property's earnings before interest, taxes, depreciation, and amortization were about $52 million.

If Gaming & Leisure's purchase of Meadows is approved by regulators, the company plans to sell the entities that own the licenses and operating businesses to a third-party operator. Gaming & Leisure will keep the real estate and collect rent.

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