One of the wholly-owned subsidiaries of Penn National Gaming Inc. (PENN) recently inked a development agreement with the Jamul Indian Tribal Village to jointly set up a casino and resort on the Tribe’s trust land in San Diego County, CA. The property is expected to cost around $360 million.
The planned development will include a 200,000 square feet-and three-storied gaming and entertainment facility, with at least 1,700 slot machines and 50 live table games including poker, multiple restaurants, bars and lounges.
With a completion timeframe of approximately 24 months, the project is anticipated to begin later this year. The project will create significant job opportunities for the local people of that area. Upon completion, Penn National will manage the casino and resort.
Penn National Gaming presently operates twenty-nine facilities in different states including Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia and Ontario. The latest property will further extend the company’s geographical reach.
Penn Gaming is also exploring several other developmental opportunities as the casino-operator submitted an application fee to construct a casino in the north end of Springfield. Another casino operator MGM Resorts International (MGM) also remains committed to developing an $800 million-worth dining, retail and entertainment destination in Massachusetts as the demand for gambling in the state shows great opportunity.
Penn National boasts one of the strongest balance sheets in the industry and remains an active developer in the industry. It is the only casino operator in the country to have launched six new facilities over the past five years.
Penn Gaming currently retains a Zacks Rank #4 (Sell). Other players in the gaming industry, which look attractive at current levels include MGM Resorts, Bally Technologies Inc. (BYI) and Multimedia Games Inc. (MGAM) all carrying a Zacks Rank #2 (Buy).
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