Deal could include L’Auberge Casino Resort

Pennsylvania-based Penn National Gaming is talking with Pinnacle Entertainment about acquiring the company “in a cash and stock transaction,” according to a statement released by Pinnacle on Thursday.

The Advocate reported that the discussions revolve around Penn National acquiring Pinnacle and operating more than 40 properties under one company. The properties could include L’Auberge Casino Resort in Lake Charles, L’Auberge Casino and Hotel in Baton Rouge, Boomtown Casino and Hotel in New Orleans, and Hotel Bossier City.

The Louisiana Gaming Control Board in April 2016 approved a deal allowing Pinnacle to sell and lease back several casinos to Gaming and Leisure Properties Inc. Included in the sale were the L’Auberge properties in Lake Charles and Baton Rouge, along with the Boomtown Casino properties in New Orleans and Bossier City.

According to the Gaming and Leisure Properties website, the real estate investment trust company began in 2013 as an offshoot of Penn National. It owns and operates Hollywood Casino Baton Rouge.

The deal between Pinnacle and Gaming and Leisure Properties requires Pinnacle to pay GLPI $377 million in annual rent to operate the gambling facilities.

According to the statement released by Pinnacle, the discussions between Pinnacle and Penn National “may or may not lead to any transaction.” It added that Pinnacle “does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required.”

The statement also reads that “there can be no assurance that an agreement providing for a transaction will be reached, or if an agreement is reached, that a transaction will be completed.” Also, the two companies’ boards, along with regulators and shareholders, would have to approve any transaction.

An official with the Louisiana Gaming Control Board said Friday that regulators have not received any petition from Penn National requesting a transfer of ownership interest. The board would have to approve a transfer of ownership. 

Ronnie Jones, board chairman, told The Advocate on Thursday that a deal would not bring about problems with state regulators because Gaming and Leisure Properties is “pretty separated out” from Penn National. But he said it’s too soon to determine specifics of a possible agreement.

“I know the companies had been talking, then they stopped talking and now they’ve started again,” he said.