Penn National Gaming is pushing ahead to acquire one of the best-known bookmakers and certainly one of the most successful ones – Pinnacle Entertainment. The deal will be concluded by mid-October, the company has said, with the reported value of the deal reaching the eye-watering $2.8 billion.
A Penn-y for Your Thought
If you are eager to witness one of the major shifts in the gambling industry, you needn’t wait long. Pinnacle Entertainment is reportedly being sold to Penn National Gaming for the significant $2.8 billion in net value.
Now, you needn’t rely on hearsay either to see that the regulators have already approved the merger between the two companies according to an official press release published by Penn National.
The approval has been the courtesy of the custodians of all things gambling in the industry, to name the Nevada Gaming Commission and the Nevada Gaming Control Board. But the acquisition Penn had obtained is not just the work of a few regulatory bodies.
The company has been canvassing with 13 states out there, asking for a permission and it has been a long and arduous process. Finally, the Federal Trade Commission (FTC) has just agreed to see the deal through, opening the sluicegates in front of a true gambling mastodon.
We haven’t exactly been surprised by the news either, to be quite honest. At the end of 2017, Business Insider broke the story that Penn will be acquiring Pinnacle in the second half of 2018, a timeline that the company surprisingly managed to keep. And when we say surprisingly, we only mean to point out to the slew of regulatory challenges that lied well ahead on the road.
A Coveted Green Light for All
Penn Entertainment haven’t been too arrogant in the matter either. Penn CEO Timothy Wilmott hurried up to share his gratitude and appreciation for the assistance the company received from the Nevada Gaming Control Board, which acted in a timely fashion and processed all due documents.
The acquisition of the final documents, Wilmott noted, mean that the deal can finally be closed later in October. Of course, concessions had to be done, as the anti-trust authorities have been alarmed about the creation of a behemoth of unprecedented scale which will take on the entire domestic market.
As a result, Pinnacle will be selling properties worth $525 million on one occasion, which will leave it 12 assets that will be readily added to Penn Entertainment’s own portfolio. The latest deal will result in a total tally for Penn Entertainment to the tune of 35,000 employees and 41 gaming facilities. It will also be a significant leg-up for a business that will consolidate its presence online and well overseas.
Pinnacle is active in Europe as it is in North America. Thanks to the acquisition of Pinnacle, Penn will be able to bolster its further plans for the expansion of its own sports betting segment, which will now be arriving in West Virginia, Mississippi, and Pennsylvania for the time being, but more moves are expected very soon.