he proposed purchase, which will be funded from cash on hand, includes a total of approximately 155 acres of land, 35 of which are currently undeveloped. The transaction is anticipated to close by the end of the first quarter of 2011.
Anthony Sanfilippo, President and CEO of Pinnacle Entertainment, commented, "The proposed acquisition of River Downs Racetrack is consistent with our strategy to thoughtfully deploy our solid balance sheet for return-focused growth opportunities. The transaction positions Pinnacle to benefit from the possible legalization of video lottery terminals (VLTs) at Ohio's racetracks and, with the facility's metropolitan Cincinnati location, we believe River Downs offers an excellent complement to our nearby Belterra Casino Resort in Indiana, while also further diversifying our operating base”
He added: “River Downs has enjoyed a rich heritage in the heart of the horse racing community in Ohio and along the Kentucky border. We look forward to building on this heritage and enhancing the operations of the facility. If VLTs are allowed in Ohio, Pinnacle will revitalize River Downs as a unique gaming entertainment destination in Cincinnati, which will drive the creation of new full-time jobs while generating new tax revenue for the state and local community. Given our financial liquidity profile and property development experience, we are prepared to move quickly on the creation of a new gaming entertainment facility at the track."