Industry News
Penn is in a powerful position, sitting atop $775 million in extra cash. That is from a breakup fee when a private equity group failed to close a deal earlier this year to acquire Penn, whose properties include the Argosy Riverside Casino.
Now, said Clifford, “we’re in great shape,” and looking to enlarge the company from a midsize industry player to one of the “large cap” big boys.
The chance to run the Wichita area casino opened up when Harrah’s Entertainment and its partners gave up on plans to come to Kansas. They had been selected earlier this year by Kansas authorities over Penn and other applicants. But Harrah’s on Monday withdrew its $560 million bid. So the state will start the bidding process all over again.
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Kansas Lottery director Ed Van Petten, visiting Las Vegas for an annual industry trade show, said he expected the new application deadline to fall in early April. He also said he expected a few of the state’s other casino prospects to apply for the Sumner County contract.
“Capital is available,” said Daniel D’Arrigo, chief financial officer for the MGM Mirage casino group.
Investment has been a big part of casino companies’ growth, along with new casinos financed with low-cost borrowing.
“We’re going to see market share shifts,” predicted Deutsche Bank Securities analyst Bill Lerner. “The gaming industry is changing for the better.”
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