Churchill Downs Expands Reach With P2E Acquisition

Written By Nicholaus Garcia on November 2, 2022
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Churchill Downs Incorporated (CDI) announced the completed purchase of all assets of Peninsula Pacific Entertainment LLC (P2E).

According to a press release, the deal is for $2.75 billion and includes all P2E assets in Iowa, New York, and Virginia. 

Churchill Downs marks significant additions

“Today marks a significant moment in the evolution of Churchill Downs Incorporated,” said Bill Carstanjen, Chief Executive Officer of CDI.

“This transaction meaningfully expands our geographic footprint to Iowa, New York and Virginia, introducing a very unique set of assets and attractive organic growth opportunities to our company. We are excited to welcome the teams from each of these well-established properties into Churchill Downs Incorporated.”

The Churchill Downs portfolio now includes the following:

  • Colonial Downs Racetrack in New Kent, Virginia
  • del Lago Resort & Casino in Waterloo, New York
  • Hard Rock Hotel & Casino in Sioux City, Iowa

Other P2E assets now in the portfolio

In Virginia, CDI all takes control of six historical horse racing (HHR) facilities across the state. The HHR’s locations include Collinsville, Dumfries, Hampton, New Kent, Richmond and Vinton. In total, the six locations house 2,700 HHR machines. 

The del Lago Resort & Casino is a 96,000-square-foot casino with 1,700 slot machines, 80 table games and a 205-room hotel. The property is also home to nine restaurants, bars, and a New York sportsbook covering 6,000 square feet. Churchill Downs received its license to operate the casino last week.

In Iowa, the Hard Rock Casino has 639 slot machines, 20 table games, a 54-room hotel, two live-entertainment venues, and a Hard Rock-branded sportsbook. 

Potential future developments in Virginia

The deal also comes with future P2E development rights.

CDI will have the opportunity to develop five additional HHR entertainment venues in Virginia and collectively add 2,300 machines. 

The company has the right to build a new HHR facility in Dumfries with 1,800 machines. The project is already underway and has an opening date of 2023. Another project in Emporia, Virginia, will have 150 HHR machines and is expected to open in 2023. 

Lastly, CDI now becomes the new partner of Urban One to develop ONE Casino + Resort in Richmond, Virginia. The $565 million project has not been able to get off the ground in Richmond, however, and experts anticipate the license will move to nearby Petersburg. 

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Nicholaus Garcia

Nick Garcia is a senior reporter for PlayUSA. Garcia provides analysis and in-depth coverage of the gambling industry with a key focus on online casinos, sports betting and financial markets. Garcia has been covering the US gambling market since 2017. He attended Texas Tech University as an undergrad and received a Master of Arts in Journalism from Columbia College Chicago.

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