Pinnacle Ent’s $138m deal for Meadows casino; second Philly license challenged

Pennsylvania’s casino market welcomed a new operator this week while pumping the brakes on another operator’s plans to enter the market.

Starting with the positive news, Nevada-based Pinnacle Entertainment Inc. announced a deal on Tuesday to take over operation of The Meadows Racetrack and Casino in Washington County.

The property was acquired last year by Gaming and Leisure Properties (GLPI), the real estate arm of Penn National Gaming, which also acquired Pinnacle’s real estate assets last July, so the dance partners here aren’t exactly strangers.

Pinnacle, which operates 15 gambling venues in eight US states (but not Pennsylvania), has agreed to pay GLPI $138m for Meadows’ gaming license and operating assets, which include a 180k-square-foot-casino and a harness racing track. Pinnacle will also pay GLPI annual rent of $25.5m for the first decade, with options to renew.