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.
History
Peninsula Gaming (1999–2012)
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 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]
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]