Next stop in Meadows acquisitions: License transfers

Applications to transfer the Meadows Casino and Racetrack licenses to a new player in Pennsylvania gaming, Pinnacle Entertainment, haven't yet been filed, according to state officials.

Washington Trotting Association, which owns the licenses right now, got approved Wednesday by the Pennsylvania Gaming Control Board for a three-year license renewal. But that will likely change by the end of the year when the Meadows Casino and Racetrack's current owner sells the North Strabane complex to Wyomissing-based Gaming & Leisure Properties Inc. (Nasdaq: GLPI). GLPI will in turn sell the licenses and operation to Pinnacle (Nasdaq: PNK) for at least a 10-year term while it continues to own the real estate.

The Gaming Control Board has not yet received a formal application for the license transfer, according to spokesman Doug Harbach. The process involves a thorough background investigation of the entity and its officers wanting to hold the license, as well as their viability as a casino operator, he said. Although it operates casinos in 10 states, Pinnacle Entertainment has not held a casino license in Pennsylvania.

"It's a process that would take a number of months at the least," Harbach said. GLPI and Pinnacle hope to have the deal completed by the late third quarter of 2016.

The racetrack license transfer will have to be approved by Pennsylvania's harness-racing commission, which will be the newly approved State Horse Racing Commission.

"The vetting process involves reviewing substantial documentation, financial records of the corporate entities, directors, officers and shareholders of the new company to determine if the purchase is consistent with the best interests of harness racing," said Brandi Hunter-Davenport, communications director at the Pennsylvania Department of Agriculture.

GLPI and Pinnacle did not respond to requests for comment.

Paul J. Gough is digital producer at the Pittsburgh Business Times, and writes about energy and the environment. Contact him at pgough@bizjournals.com or 412-208-3827. You can also follow him on Twitter.

Reprinted with permission of Pittsburg Business Times