On Friday, November 26, Pinnacle Entertainment, Inc. announced that it had entered into an agreement to acquire River Downs Racetrack for $45 million, subject to approval from the Ohio State Racing Commission.

Located in southeast Cincinnati, Ohio, River Downs is located directly off of Interstate 275 and adjacent to Riverbend Music Center, along the Ohio River. The proposed purchase, which will be funded from cash on hand, includes a total of approximately 155 acres of land, 35 of which are currently undeveloped. The transaction is anticipated to close by the end of the first quarter of 2011.

"The proposed acquisition of River Downs Racetrack is consistent with our strategy to thoughtfully deploy our solid balance sheet for return-focused growth opportunities. The transaction positions Pinnacle to benefit from the possible legalization of video lottery terminals (VLTs) at Ohio's racetracks and, with the facility's metropolitan Cincinnati location, we believe River Downs offers an excellent complement to our nearby Belterra Casino Resort in Indiana, while also further diversifying our operating base," said Pinnacle Entertainment President and CEO Anthony Sanfilippo.

He went on to say, "If VLTs are allowed in Ohio, Pinnacle will revitalize River Downs as a unique gaming entertainment destination in Cincinnati, which will drive the creation of new full-time jobs while generating new tax revenue for the state and local community. Given our financial liquidity profile and property development experience, we are prepared to move quickly on the creation of a new gaming entertainment facility at the track."

(With files from Pinnacle Entertainment, Inc.)