Gaming Leisure Properties, a US group that buys properties and leases them to gaming operators, has tied up a deal with Penn National Gaming and Casino Queen.
Under the arrangements, GLP has an agreement with Penn to sell to it the operations of Hollywood Casino, Perryville, in Maryland for $31.1m in cash. Upon completion it will enter into a new lease with Penn for the real estate assets associated with the casino for an annual rent of $7.77m for 15 years.
GLP has also entered into an agreement to sell the operations of Hollywood Casino Baton Rouge, Louisiana, to Casino Queen Holding Company for $28.2m. it will retain ownership of the real estate at the casino and lease it to Casino Queen.
That deal will include the DraftKings at Casino Queen in East St Louis and the Hollywood Casino at Baton Rouge for a rent of $21.4m per annum over 15 years.
Penn National is a regional gaming operator with 41 properties in 19 states, with a holding of 50,000 gaming machines and 1,300 tables. Casino Queen is also a regional operator, owned by Standard General that owns or is under contract to buy four casinos across three states.