PENN Entertainment, Inc. has announced plans for an estimated $180-$200 million project to relocate its Ameristar Casino Hotel Council Bluffs riverboat casino operations to a new land-based property to be rebranded as Hollywood Casino Council Bluffs.
The proposal to relocate the casino was approved by the Iowa Racing and Gaming Commission last week in conjunction with a 15-year extension of Ameristar’s partnership with the nonprofit Qualified Sponsoring Organization (QSO) Iowa West Racing Association.
Hollywood Casino Council Bluffs Will Feature ESPN BET Sportsbook, Approximately 58,000 Square Feet Of Gaming Space
All commercial operators in Iowa are required to have an operating agreement with a QSO licensed to conduct gaming operations.
“We are pleased to add another landside relocation to our pipeline of development projects,” said Todd George, Executive Vice President of Operations for PENN. “This project will enhance the quality and efficiency of our Council Bluffs location and significantly improve the property’s competitive positioning in the greater Omaha market.
“PENN’s diversified portfolio of casino properties is core to our omni-channel approach to entertainment, which combines our best-in-class retail operations and a database of more than 32 million PENN Play members with our robust interactive and media footprint. We thank the Iowa Racing and Gaming Commission for their approval today and are grateful for the continued collaboration with our partners at the Iowa West Racing Association.”
Under the proposed plan, the new Hollywood Council Bluffs is expected to include approximately 125,000 square feet of new development with about 58,000 square feet of gaming space and more than 1,000 positions on a single level.
The new facility will complement the existing ESPN BET sportsbook, 160-room hotel, and dining options in the landside portion of the current infrastructure.
Ameristar Casino Hotel Council Bluffs Riverboat Casino To Shut Down
Meanwhile, Ameristar Casino Hotel Council Bluffs riverboat casino, which currently offers gaming spread out over three levels, will be vacated upon opening of the new property.
“We are thrilled with the exciting development plans for the new Hollywood Casino Council Bluffs,” said Brenda Mainwaring, President & CEO of the Iowa West Racing Association.
“For nearly thirty years, the Ameristar riverboat has been providing not only dining and entertainment, but thousands of jobs and millions of dollars in support of our community. PENN’s commitment to reinvesting in Council Bluffs is laudable and we are grateful for our ongoing partnership.”
Construction of the new facility is expected to take approximately 18-24 months following the design and permitting approval process. The company is also entitled to obtain financing for the project from Gaming and Leisure Properties, Inc.
Hollywood Casino Council Bluffs will receive up to $150 million at a 7.10% cap rate, which may be structured at PENN’s option as either rent or a five-year term loan that is pre-payable without penalty.
Jose is an iGaming analyst with wide experience within the sector. He has been working as content writer on casino and betting websites for more than 10 years, contributing on websites like Pokerlistings, Casinobee, Betpack among others, sharing his insights and perspective for the future ofthe iGaming market.
