PENN Entertainment Breaks Ground on $180–$200 Million Hollywood Casino Hotel in Council Bluffs

PENN Entertainment, Inc. (Nasdaq: PENN) announced Wednesday it will host a groundbreaking ceremony on September 14, 2026, for the Hollywood Casino Hotel Council Bluffs, a $180–$200 million land-based gaming and hospitality development in Council Bluffs, Iowa. The facility is expected to open in 2028, pending regulatory approvals, and will replace the company's adjacent Ameristar Council Bluffs riverboat casino upon completion.

The project marks PENN Entertainment's third landside relocation in recent years, following the grand openings of Hollywood Casino Joliet and Hollywood Casino Hotel Aurora in Illinois in 2025 and 2026, respectively. The company has also separately announced a proposed relocation and rebranding of its riverboat operations in New Orleans, where a new Hollywood Casino New Orleans is expected to open in 2029, pending regulatory approval.

Project Details and Amenities

The new facility is planned as an approximately 135,000-square-foot, two-story building constructed in the existing property's parking area, adjacent to the current riverboat and hotel. The casino floor will feature approximately 1,000 slot machines and 25 live table games. Upon completion, the new structure will connect directly to the existing pavilion and hotel, providing access to more than 160 hotel rooms along with existing amenities including 1853 Bistro and Steakhouse, The Sportsbook Restaurant and Bar, Club 38 VIP Lounge, and Buffet.

Two new dining concepts will debut at the property: the first Shake Shack in the Omaha metropolitan area and Red Lotus, a fast-casual restaurant featuring made-to-order Asian cuisine, noodle dishes, and Southeast Asian specialties. Hollywood Casino Hotel Council Bluffs will become the 20th Hollywood-branded gaming facility in PENN's portfolio.

"We are thrilled to be celebrating yet another transition from riverboat gaming to a new best-in-class entertainment destination," said Jay Snowden, CEO and President of PENN Entertainment. "Coupled with our recent announcement in New Orleans, we continue to prioritize organic growth opportunities with a disciplined approach to strengthening PENN's competitive position in our markets across the country."

Jobs and Construction Timeline

The existing Ameristar Council Bluffs riverboat currently employs more than 500 team members. Construction of the new facility is projected to take approximately 18 to 24 months and is expected to generate roughly 450 construction jobs. An additional 50 new permanent positions are anticipated at the new Hollywood Council Bluffs upon opening.

Paul Czak, Vice President and General Manager of Hollywood Council Bluffs, said: "We are incredibly excited for the future of Hollywood Casino Hotel Council Bluffs. This groundbreaking is a significant milestone on the road to a beautiful new facility that will create hundreds of jobs in the community and provide our guests with an even greater entertainment experience."

Area dignitaries and local stakeholders are expected to attend the September 14 groundbreaking ceremony, including representatives from Iowa West Racing Association, the property's nonprofit partner. Under Iowa law, all commercial gaming operators are required to maintain an operating agreement with a nonprofit Qualified Sponsoring Organization in order to conduct gaming operations.

Financing Structure

PENN Entertainment is entitled to obtain financing for the project from Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) of up to $150 million at a 7.10% cap rate. The financing may be structured at PENN's option as either rent or a five-year loan that is prepayable at any time without penalty. At $150 million, the GLPI facility would fund between 75% and 83% of the project's stated cost range, depending on the final budget. If structured as a real estate lease, the arrangement would imply approximately $10.65 million in annual rent obligations.

Market Context

The Council Bluffs gaming market, which serves both Iowa residents and the broader Omaha metropolitan area, has experienced recent revenue pressure. Regional net gaming revenue in Council Bluffs was forecast at $408.4 million in fiscal 2024, declining to $336.5 million in fiscal 2025 and $291.6 million in fiscal 2026, before a modest recovery to $296.1 million projected for fiscal 2028. Iowa Racing and Gaming Commission data showed an 11.14% year-to-date decline in taxes for the Council Bluffs market through a recent reporting period. In August 2026, Ameristar II generated approximately $11.3 million in revenue, while statewide casino revenue fell 13.1% year over year to $131.4 million that month.

PENN Entertainment reported $1.86 billion in second-quarter 2026 revenue, compared with $1.77 billion in the prior-year quarter, and $32.6 million of net income, compared with a prior-year loss of $18.3 million. The company's retail segment generated $1.5 billion in revenue and $517.2 million in Adjusted EBITDAR during the quarter. For full-year 2025, PENN reported revenue of $6.961 billion, up from $6.578 billion in 2024. The company operates across 28 North American jurisdictions and reports approximately 34 million PENN Play loyalty program members.

The Council Bluffs development is consistent with PENN's broader strategy of reinvesting in its retail casino portfolio while its digital and interactive segment continues to require investment. The land-based format is expected to provide more flexible space for gaming, food and beverage, and customer amenities compared with the existing riverboat configuration.

Sources

PENN Entertainment, Inc. — Investor Relations Press Release, September 10, 2026