Penn Entertainment Approached by Boyd for Possible Buyout
Rumours have been circulating for a while, but Reuters made it official with a report about how Boyd Gaming recently approached Penn Entertainment with a buyout offer. If the sale happens in what is being touted as a $9 million value possible deal, big changes could be afoot in the PA online casinos and retail casinos scene given the extent of Penn’s interests across the Keystone State.
Which PA Casinos Would Be Affected?
Penn Entertainment owns some 43 casinos and racetracks across 20 US states, four of which are in Pennsylvania. These are The Meadows, York, Morgantown and Penn National Racecourse. All four hold a strong positioning among PA gamblers, and a potential Boyd takeover would undoubtedly come with repercussions.
How likely is the buy-out to happen? The Reuters report acknowledged that there is no certainty Penn Entertainment will engage with its would-be buyers. Moreover, Penn would come with a total debt of some $7.8 million, which would need to be absorbed in addition to the massive market value.
Penn’s licensing deal with Walt Disney to use the ESPN brand could also prove to be a stumbling block, as the deal included rights worth about $500 million for ESPN to purchase Penn stock.
However, it’s no secret that Penn’s performance has been flagging as of late. According to figures released by the Pennsylvania Gaming Control Board (PGCB) for the month of May, slot machine revenue from Hollywood Casino at Penn National Racecourse dipped by 1.62% when compared to the same month last year. Table games sustained a stronger decline, going down by -11.11%.
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