Penn National buying Illinois slot machine route operator
Regional casino operator Penn National Gaming said Friday it was acquiring an Illinois-based slot machine route operator for an undisclosed price that will give the company ownership of more than 1,100 slot machines in 270 locations around the state.
In a statement, Penn National said Prairie State Gaming generated $10 million in cash flow through the games last year. Illinois allows businesses with liquor licenses to operate slot machinelike video lottery terminals managed by a route operator.
Penn National operates three casinos in Illinois. The company owns M Resort in Henderson and is buying the Tropicana Las Vegas for $360 million.
Fantini Gaming Research said Illinois VLTs have become competitors to casino operators. The slot machine businesses generated $72.8 million in revenue last month, compared to the casinos' $118.1 million in revenue.
Penn National Chief Operating Officer Jay Snowden said the deal meets with the company's strategy of long-term growth through acquisitions.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Find @howardstutz on Twitter.
