PENN to separate gaming and property assets

Aug 26, 2013 6:05 PM

Four additional regulatory agencies have approved the Penn National Gaming Inc. (PENN) plan to separate its operating (gaming) assets and its real property assets.

The two new companies will be traded separately.

Real Estate Investment Trusts (called REITs) are accorded special tax status by the Internal Revenue Service. These tax benefits have motivated the operators of the gaming company to seek a split of assets.

The company expects the real estate portfolio (to be known as GLPI) will initially have 19 casino facilities with over 2,900 acres of land. GLPI will then lease back to Penn National Gaming 17 of these casino facilities.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at [email protected].

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