The Nevada Gaming Control Board has approved the $1.18 billion “spinoff” project to be undertaken by Caesars Entertainment Corp. (CZR) and the plan by Penn National Gaming Inc. (PENN) to place most of its gaming properties in a Real Estate Investment Trust (REIT).
Caesars said it would generate the $1.18 billion by selling stock in an entity that would be created by the spinoff of the Planet Hollywood Hotel/Casino, Caesars Interactive, owner of the World Series of Poker, and the Baltimore casinos currently under construction.
The new entity, whichwould be traded separately from shares of Caesars Entertainment, would have TPG Global and Apollo Global Management as majority owners after investing some $500 million in the project.
The REIT being created by Penn National would lease back 17 casinos to the company, which will retain ownership of its casinos in Baton Rouge, Louisiana, and Perryville, Maryland.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at [email protected].