Peninsula Pacific Entertainment

Peninsula Pacific Entertainment (P2E) is a casino gaming company based in Los Angeles. It began operations in 1999, doing business through a subsidiary, Peninsula Gaming. Its holdings grew to five properties, until 2012, when Peninsula Gaming was sold to Boyd Gaming for $1.45 billion. Afterward, P2E continued to acquire and develop gaming properties. In 2022, it sold the bulk of its assets to Churchill Downs, Inc. for $2.8 billion.

Peninsula Pacific Entertainment
TypePrivate
IndustryGaming
Headquarters
Los Angeles
Key people
  • Brent Stevens (Chairman & co-founder)
  • Jonathan Swain (President)
Websitep2e.com

History

Peninsula Gaming (1999–2012)
Diamond Jo Casino in Dubuque, Iowa

In January 1999, Los Angeles-based AB Capital agreed to purchase the Diamond Jo Casino in Dubuque, Iowa for $77 million.[1] The company's major shareholders were Los Angeles investment banker Brent Stevens and Las Vegas gaming developer Michael Luzich.[2] The purchase was completed in July 1999,[3] by which time the company had changed its name to Peninsula Gaming.[4]

In February 2002, Peninsula bought a fifty percent interest in the Evangeline Downs racetrack in Lafayette Parish, Louisiana from B. I. Moody for $15 million.[5] They bought the remaining half several months later from William Trotter for another $15 million, plus 0.5% of slot revenues for the first ten years.[6] After Lafayette voters had rejected slot machines at the track, Evangeline Downs had planned a move to St. Landry Parish, which Peninsula carried out. The casino at the new site opened in late 2003,[7] with races following in 2005.[8]

In 2004, Peninsula announced a proposed sister casino to the Diamond Jo, to be built in Worth County, Iowa at a cost of $40 million.[9] The project was awarded a gaming license in May 2005,[10] and the Diamond Jo Worth opened in April 2006.[11]

In 2009, Peninsula proposed building a $150-million racetrack casino in Des Moines, Iowa that would be a sister property to the Prairie Meadows racino.[12] Prairie Meadows ultimately rejected the plan.[13]

In June 2009, Peninsula agreed to buy the Amelia Belle riverboat casino in Amelia, Louisiana from Columbia Sussex for $106.5 million.[14] The purchase closed in October 2009.[15]

In November 2009, the company partnered with a group of local investors in a proposal to build a casino in Fort Dodge, Iowa.[16] The application for Diamond Jo Fort Dodge[17] was ultimately rejected by the Iowa Racing and Gaming Commission, over concerns that the casino would draw too much business from the Wild Rose Casino in Emmetsburg.[18] Criminal charges were later filed against Peninsula and two of its executives (Brent Stevens and Jonathan Swain),[19] alleging that they improperly funneled $25,000 in campaign contributions to Governor Chet Culver through three of the Fort Dodge investors.[20] The case was ultimately settled, with the criminal charges being dismissed and Peninsula agreeing to pay the costs of the investigation plus a $4,000 civil penalty.[21] In the settlement agreement, the company and its executives denied that they intended to violate the law.[22]

In 2010, Peninsula held discussions with the city of Davenport, Iowa about redeveloping or replacing the Rhythm City Casino, but the company withdrew to focus on its proposed Kansas casino.[23]

In July 2010, Peninsula submitted a bid for the sole available casino license in south central Kansas, proposing to build the Kansas Star Casino in Mulvane.[24] The proposal was selected as the winner,[25] and Peninsula opened the casino in a temporary facility in December 2011,[26][27] moving to a permanent facility in December 2012.[28]

In May 2012, Boyd Gaming agreed to buy Peninsula Gaming for $1.45 billion.[29] Boyd executives particularly emphasized their interest in the high growth potential of the Kansas Star Casino.[30] The acquisition was completed on November 20, 2012.[31]

Peninsula Pacific Entertainment (2013–present)

Following the sale to Boyd, the holding company that had owned Peninsula Gaming continued to do business as Peninsula Pacific Entertainment.[32]

Hard Rock Hotel & Casino in Sioux City, Iowa

In January 2013, P2E partnered with Warner Gaming in developing the Hard Rock Hotel & Casino Sioux City, becoming 50% owners of the property when it opened the next year.[33][34] P2E bought out Warner's stake in the property in 2020.[34]

The company joined with local investors in July 2013 to propose a casino in Cedar Rapids, Iowa.[35] The plan for the Cedar Crossing Casino was rejected by state gaming regulators in 2014 and again in 2017.[36][37] P2E said in 2022 that it would submit a new proposal to regulators in 2024, after expiration of a two-year state moratorium on new casinos.[38]

In 2014, the company joined with Wilmorite in a proposal for a casino resort in Tyre, New York.[39] The Del Lago Resort and Casino opened in 2017.[40] P2E agreed in 2019 to buy out Wilmorite's stake, becoming the sole owner of the property.[41]

P2E bought the DiamondJacks Casino in Bossier City, Louisiana in 2016.[42] The casino closed in 2020 due to the impact of the COVID-19 pandemic.[43] P2E proposed to use the casino license for a new property, the Camellia Bay Resort and Casino, to be built in Slidell, Louisiana, but it was rejected by parish voters.[44][45] Faced with the threat of revocation of the casino license, P2E agreed in 2022 to sell DiamondJacks to Foundation Gaming.[46]

P2E partnered with other investors in 2018 to purchase Colonial Downs, a defunct horse racing track in Virginia.[47] P2E later bought out its partners' stake in the property.[48] The track reopened in 2019, and P2E opened several satellite facilities with historical racing machines and off-track betting around the state under the Rosie's brand.[49]

In February 2022, P2E agreed to sell the bulk of its assets to Churchill Downs, Inc. for $2.49 billion.[50][51] The sale would not include DiamondJacks or the Cedar Crossing project.[51] The transaction was completed in November 2022, for a final price of $2.75 billion.[52]

Properties

Former properties
Del Lago Resort and Casino in Tyre, New York

References
  1. Mike Krapfl (January 17, 1999). "Diamond Jo owners OK sale". Telegraph-Herald. Dubuque, IA – via NewsBank.
  2. Renee Berg (May 23, 1999). "New owners to run Diamond Jo from afar". Telegraph-Herald. Dubuque, IA – via NewsBank.
  3. Renee Berg (July 16, 1999). "Local riverboat investors hit jackpot with sale". Telegraph-Herald. Dubuque, IA – via NewsBank.
  4. Renee Berg (July 7, 1999). "Diamond Jo one step closer to completing sale". Telegraph-Herald. Dubuque, IA – via NewsBank.
  5. "Peninsula Gaming eyeing full ownership of Evangeline Downs". The Blood-Horse. August 2, 2002. Retrieved 2012-05-17.
  6. Hector San Miguel (September 6, 2002). "With sale, Evangeline Downs poised for big move". The Blood-Horse. Retrieved 2012-05-17.
  7. Hector San Miguel (December 20, 2003). "Evangeline Downs gets early Christmas present". The Blood-Horse. Retrieved 2012-05-17.
  8. Tom LaMarra (April 7, 2005). "New Evangeline Downs breaks from gate". The Blood-Horse. Retrieved 2012-05-17.
  9. M.D. Kittle (November 17, 2004). "Diamond Jo parent eyes 2nd Iowa casino". Telegraph-Herald – via NewsBank.
  10. M.D. Kittle (May 12, 2005). "Diamond Jo firm hits jackpot". Telegraph-Herald. Dubuque, IA – via NewsBank.
  11. M.D. Kittle (April 6, 2006). "Diamond Jo's sister casino opens today". Telegraph-Herald. Dubuque, IA – via NewsBank.
  12. "New pitches cloud Iowa's casino landscape". The Quad-City Times. Davenport, IA. August 25, 2009 – via NewsBank.
  13. "Gaming officials: Second Des Moines casino dead". Telegraph-Herald. Dubuque, IA. August 28, 2009. Archived from the original on September 24, 2015. Retrieved 2012-05-16. (Partial story rendition from HighBeam.com archive.)
  14. "Amelia Belle sale pending". The Daily Review. Morgan City, LA. June 23, 2009 – via NewsBank.
  15. "Amelia floating casino has new owner". The Daily Review. Morgan City, LA. October 30, 2009 – via NewsBank.
  16. "Key participants in the Fort Dodge casino bid". Des Moines Register. April 18, 2010. Retrieved 2015-04-15.
  17. Bill Shea (March 24, 2010). "Diamond Jo leaders make their case". The Messenger. Fort Dodge, IA. Retrieved 2015-04-15.
  18. Bill Shea (May 14, 2010). "IRGC says no casino". The Messenger. Fort Dodge, IA. Retrieved 2015-04-15.
  19. "Lawyers explain dismissal of Culver case". Des Moines Register. Des Moines, IA: Newspapers.com archives. October 4, 2012. pp. B1, B3. Retrieved October 3, 2020.
  20. Rod Boshart Lee (October 11, 2010). "Prosecutor files charges for illegal contributions to Culver". Sioux City Journal – via NewsBank.
  21. "Prosecutors in Culver campaign contribution: Settlement was 'in the best interest of justice'". Des Moines Register. AP. October 3, 2012. Retrieved 2015-04-15.
  22. "Lawyers explain dismissal of Culver case". Des Moines Register. Des Moines IA: Newspapers.com archives. October 4, 2012. p. B3. Retrieved October 3, 2020.
  23. Kurt Allemeier (November 5, 2010). "Davenport to consider $75M casino plan". The Quad-City Times. Davenport, IA – via NewsBank.
  24. Fred Mann (July 23, 2010). "3 groups competing for Sumner Co. casino". Wichita Eagle. Retrieved 2015-04-15.
  25. "Board: Mulvane site has more revenue potential". Winfield Daily Courier. AP. December 16, 2010. Retrieved 2014-12-04.
  26. "New casino may draw 2 million-plus visitors". Topeka Capital-Journal. AP. December 9, 2011. Retrieved 2014-11-21.
  27. "Peninsula's new Kansas casino nets $3.25M". Telegraph-Herald. Dubuque, IA. December 31, 2011. Archived from the original on March 29, 2015. (Partial story rendition from HighBeam.com archive.)
  28. John Stearns (December 21, 2012). "Kansas Star Casino opens rest of permanent casino". Wichita Business Journal. Retrieved 2014-11-21.
  29. Chris Sieroty (May 16, 2012). "Boyd Gaming to buy Peninsula Gaming for $1.45 billion". Las Vegas Review-Journal. Retrieved 2015-04-15.
  30. John Stearns (May 16, 2012). "Kansas Star Casino is Peninsula's 'jewel,' Boyd Gaming says". Wichita Business Journal. Retrieved 2015-04-15.
  31. "Boyd completes $1.45 billion acquisition of Peninsula Gaming". Vegas Inc. November 20, 2012. Retrieved 2012-11-20.
  32. Dave Dreeszen (February 22, 2022). "Hard Rock Sioux City casino to change hands as part of $2.5B deal". The Waterloo-Cedar Falls Courier. Retrieved 2022-06-19.
  33. Dave Dreeszen (January 22, 2013). "Former Iowa casino executive invests in Hard Rock Sioux City project". Sioux City Journal. Retrieved 2022-06-19.
  34. Nick Hytrek (October 15, 2020). "State regulators approve sole owner of Hard Rock". Sioux City Journal. Retrieved 2022-06-19.
  35. "Experienced executives to join casino project". The Gazette. Cedar Rapids, IA. July 28, 2013. Retrieved 2022-06-20.
  36. Margery A. Beck (April 17, 2014). "Cedar Rapids casino plan rejected". Des Moines Register. AP. Retrieved 2022-06-20.
  37. "Iowa Racing and Gaming Commission rejects Cedar Rapids casino proposals". The Gazette. Cedar Rapids, IA. November 16, 2017. Retrieved 2022-06-20.
  38. Marissa Payne (May 29, 2022). "Cedar Rapids' casino plans envision $250 million 'Cedar Crossing' entertainment complex at old Cooper's Mill site". The Gazette. Cedar Rapids, IA. Retrieved 2022-06-20.
  39. Jon Harris (June 25, 2014). "$425M Tyre casino has new name, partner, casino operator". Press & Sun-Bulletin. Binghamton, NY. Retrieved 2022-06-19.
  40. Hannagan, Charley (February 1, 2017). "CNY's newest casino - del Lago Resort & Casino - opens". The Post-Standard. Syracuse, NY. Retrieved 2018-01-12.
  41. Jon Campbell (August 16, 2019). "Rochester developer Wilmorite selling its stake in del Lago casino". Democrat & Chronicle. Rochester, NY. Retrieved 2022-06-19.
  42. Miles Jay Oliver (June 23, 2016). "DiamondJacks acquired by Los Angeles investment manager". The Shreveport Times. Retrieved 2022-06-20.
  43. "DiamondJacks closes permanently". Bossier Press-Tribune. May 15, 2020. Retrieved 2022-06-20.
  44. Chris Finch (August 19, 2021). "Controversial Slidell casino will be named Camellia Bay". WAFB-TV. Retrieved 2022-06-20.
  45. Sara Pagones (December 11, 2021). "Controversial casino proposition shot down in St. Tammany. 63% of voters say 'no'". The Advocate. Retrieved 2022-06-20.
  46. Ya'Lisha Gatewood (May 12, 2022). "DiamondJacks appears headed for new life as land-based casino". KTAL-TV. Retrieved 2022-06-20.
  47. Graham Moomaw (April 25, 2018). "Racing group buys Colonial Downs for more than $20 million, promising to revitalize Virginia horse racing". Richmond Times-Dispatch. Retrieved 2022-06-20.
  48. Kimberly Pierceall (January 16, 2019). "Chesapeake could get 700 slot-style gambling machines if Rosie's Gaming Emporium opens". The Virginian-Pilot. Retrieved 2022-06-20.
  49. "Local betting on horse racing resumes as Rosie's Emporiums reopen this week". The Virginia Gazette. June 29, 2020. Retrieved 2022-06-20.
  50. Michael Phillips (February 22, 2022). "Kentucky's Churchill Downs to acquire parent company of Colonial Downs, Rosie's". Richmond Times-Dispatch. Retrieved 2022-06-19.
  51. "Churchill Downs Incorporated announces definitive agreement to acquire substantially all of the assets of Peninsula Pacific Entertainment" (Press release). Churchill Downs, Inc. February 22, 2022. Retrieved 2022-06-19 – via GlobeNewswire.
  52. "Churchill Downs Incorporated completes acquisition of substantially all of the assets of Peninsula Pacific Entertainment" (Press release). Churchill Downs, Inc. November 1, 2022. Retrieved 2022-12-17 – via GlobeNewswire.
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