Today attorneys for UNITE HERE filed a petition for administrative review of an order enabling Pinnacle Entertainment (NASDAQ: PNK) to sell two Indiana casinos to Gaming and Leisure Properties, Inc. (NASDAQ: GLPI). UNITE HERE claims the sale violates Indiana law which requires that “a person may not have an ownership interest in more than two (2) riverboat owner’s licenses.” UNITE HERE states in its petition, “The purchases permitted by Order No. 2016-079 would cause GLPI to exceed the state statutory limit on concentration of casino ownership which limits any owner to two casinos, as GLPI already owns one casino in this state and the acquisitions would bring its ownership to 3 casinos, in violation of Indiana Code 4-33-6-3.5.”
Pinnacle Entertainment currently owns and operates two casinos in Indiana, the Belterra and Ameristar East Chicago. GLPI already owns one casino in Indiana, the Hollywood Lawrenceburg operated by Penn National Gaming (NASDAQ: PENN). Last July, GLPI announced it had entered into an agreement to acquire 14 of Pinnacle Entertainment’s 15 casinos and lease them back to Pinnacle under a Master Lease agreement.
Last week the Indiana Gaming Commission approved Order No. 2016-079 granting transfer of ownership interest in two Indiana casinos owned by Pinnacle Entertainment. UNITE HERE also filed a petition for a stay on the effectiveness of the order. Pinnacle Entertainment and GLPI still need regulatory approvals in four additional states.
UNITE HERE represents 275,000 gaming, hotel and food service workers in the U.S. and Canada.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160229006723/en/
Contacts:
Kate O’Neil, 504-858-7491
