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Penn National Gaming Inc., Completes $6.5 million Purchase of Bullwhackers Casino in Black Hawk, Colorado
Reading Eagle, Pa.
Knight Ridder/Tribune Business News 

Apr. 26--Penn National Gaming Inc., Wyomissing, announced Thursday it has completed the $6.5 million purchase of the Bullwhackers Casino operations from Colorado Gaming and Entertainment Co., a subsidiary of Hilton Group. 

Bullwhackers' assets consist of Bullwhackers Casino, the adjoining Bullpen Sports Casino, the Silver Hawk Saloon and Casino and a 475-car parking area in Black Hawk, Colo. The purchase marks Penn National's entry into the Colorado gaming marketplace. 

In a prepared statement, Peter M. Carlino, chief executive officer of Penn National, said: "While small, this transaction adheres to our strategy of opportunistically expanding our gaming portfolio in markets that offer long-term growth opportunities. 

"In addition to the strategic benefit of establishing a Colorado presence, we believe that Bullwhackers is a solid financial transaction given its attractive acquisition multiple and the potential for an excellent return on this investment." 

The Bullwhackers properties comprise 63,800 square feet of interior space, 20,700 square feet of which is devoted to gaming, consisting of about 900 slot machines. 

The properties are on leased land as well as 3.25 acres of land included in the acquisition, much of which is for parking. Penn National said the 3.25-acre parcel is one of the largest tracts of level, undeveloped land in the area, providing it with long-term development opportunities. 

Black Hawk, located 35 miles west of downtown Denver, is the largest of Colorado's three gaming markets, representing more than 60 percent of the Colorado gaming activity. 

In addition to Bullwhackers, Penn National Gaming owns and operates Charles Town Races, Charles Town, W.Va., which has 2,000 gaming machines; two Mississippi casinos -- the Casino Magic hotel, casino, golf resort and marina in Bay St. Louis and the Boomtown Biloxi casino; and the Casino Rouge, a riverboat gaming facility in Baton Rouge, La. 

Penn National also owns two racetracks and 11 off-track wagering facilities in Pennsylvania, including one in Exeter Township, and the racetrack at Charles Town Races, and operates the Casino Rama, a gaming facility about 90 miles north of Toronto. 

Penn National stock closed Thursday at $38, down 52 cents, on the Nasdaq Stock Market. 

-----To see more of the Reading Eagle, or to subscribe, go to http://www.readingeagle.com 

(c) 2002, Reading Eagle, Pa. Distributed by Knight Ridder/Tribune Business News. PENN, 


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