New ownership is in store for Washington County's Meadows Racetrack & Casino, ending a prolonged legal dispute over the purchase price for the North Strabane property. This story was reported today by Jason Cato for the Tribune Review.
Gaming & Leisure Properties Inc., a spinoff company of Penn National Gaming, announced Wednesday that it and Cannery Casino Resorts – the Las Vegas-based owners of the Meadows – reached an amended sales agreement. The new deal comes with a price tag of $440 million, which includes $10 million paid previously and includes a settlement of the lawsuit.
In May 2014, GLPI tentatively agreed to buy the racetrack and casino property for $465 million but backed out after examining financial records. The company alleged Cannery officials “did not truthfully disclose The Meadows' declining performance.” Cannery sued GLPI in state court.
The Meadows, which opened in 2007, includes a 180,000-square-foot casino with 3,172 slot machines, 74 table games and 14 poker tables. Other amenities include 11 restaurants, bars and lounges, a bowling alley and a 5⁄8-mile harness racetrack with a 500-seat grandstand. A 154-room hotel opened on the property in April. Construction in underway for a mixed-use retail, dining and living development at the property's entrance, and crews recently broke ground for a new outdoor entertainment center.
The Pennsylvania Gaming Control Board and Harness Racing Commission must approve the sale. If approved, the transaction is expected to close by November 2016, GLPI officials said.
“All of the net sale proceeds will be used to reduce our debt and better position us for the future,” said Cannery co-CEO William Paulos. “We are now focused on working with GLPI to ensure a smooth transition for our team members and customers.”
GLPI officials said they are in search of a third-party operator for the property. The company, a casino-focused real estate investment trust, leases gambling properties to other companies that actually operate racetracks and casinos.
“The amended agreement allows us to add The Meadows to our growing portfolio of high quality regional gaming assets at a price that is reflective of current property performance,” said Peter M. Carlino, GLPI's chairman and CEO. “The property has enjoyed improving performance in the second half of 2015 and we look forward to partnering with one of the many quality operators in the gaming industry to continue that momentum.
