Penn National Gaming to Buy Colorado Casinos

Penn National Gaming has agreed to purchase the assets of the Bullwhackers Casino operations from Colorado Gaming and Entertainment Co., a subsidiary of Hilton Group, for $6.5 million in cash. The Pennsylvania-based company already has gaming holdings in Louisiana and West Virginia.

The Bullwhackers assets consist of the Bullwhackers Casino, the adjoining Bullpen Sports Casino, the Silver Hawk Saloon and Casino, an administrative building, and a 475-car parking area, all located in the Black Hawk, Colo., gaming jurisdiction. The purchase is subject to customary closing conditions and approval by the Colorado Gaming Commission as well as other regulatory bodies.

Black Hawk, located 35 miles west of downtown Denver, has shown tremendous growth since the legalization of gaming in 1991 and is now the largest of Colorado's three gaming markets.

Said Peter Carlino, chief executive officer of Penn National Gaming: "Penn National remains committed to opportunistically expanding its portfolio of gaming properties in markets that offer long term growth opportunities. This purchase provides us access to a new gaming jurisdiction and the particularly strong Black Hawk market. The Bullwhacker properties are attractively priced, provide excellent development potential, and do not require immediate significant capital expenditures."