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.BALLY TECH INC (BYI): Free Stock Analysis
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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
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).