The Federal Trade commission has ordered Penn National Gaming Inc. And Pinnacle Entertainment Inc. To divest four casinos in Kansas City, St. Louis and Cincinnati.
In the Monday announcement of a settlement, the FTC outlined its divestiture requirement for Pennsylvania based Penn National to complete its $2.8 billion acquisition of Las Vegas based Pinnacle Entertainment. The Deal announced In December, bolsters Penn National’s position as the leading U.S. Regional game operator.
Penn National is asked being to sell Ameristar Casino hotel Kansas City, the Ameristar casino in the St. Louis suburb of St. Charles and two casinos in the Cincinnati city- Beltrra Park and Beltrra Resort.
The Company had already announced a deal with Las Vegas based Boyd Gaming Corp. To buy the four properties Of Pinnacle Entertainment for $575 Million.
Penn National already operates the Hollywood Casinos at Kansas Speedway and Argosy Riverside Casino. Boyd Gaming was the owner of the old Sam’s Town in Kansas City.
The Divestments were necessary because “new entry of explanation is unlikely to deter the anticompetitive effect of the acquisition in any of the effected markets”, the FTC said in the Announcement.
According to the FTC, “the agreement will be subject to public comment for 30 days, beginning today and continuing through Oct 31.
In August, the Missouri Gaming Commission approved for Penn National’s proposed acquisition of Pinnacle Entertainment.