Hollywood Casino Hotel Council Bluffs in Iowa will begin construction on Monday, September 14th.
Penn Entertainment is replacing its Ameristar Council Bluffs with a new casino in the city along the Missouri River opposite Omaha. Thirty years after Ameristar began as a riverboat, Penn officials are investing $180 million to $200 million to create a modern casino with more gaming options and dining choices.
We are excited to mark another shift from riverboat gaming to a new top-quality entertainment destination,” said Jay Snowden, CEO and president of Penn Entertainment.
Once the new casino is completed, Ameristar will be rebranded as Hollywood. The casino will feature space for the first Shake Shack in the Omaha metropolitan area. Additionally, the project includes a fast-casual Asian restaurant called the Red Lotus.
The land-based casino will have 1,000 slot machines and 25 live dealer table games. It will be connected to the existing 160-room hotel, The Sportsbook Restaurant and Bar, 1853 Bistro and Steakhouse, Club 38 VIP Lounge, and Buffet.
Penn estimates that the project will generate 450 construction jobs and add 50 permanent positions to the casino’s current workforce of over 500 employees. Construction is anticipated to take 18 to 24 months.
Gaming and Leisure Properties, Inc., Penn’s landlord, is providing up to $150 million in financing at a capped rate of 7.1%. Penn can repay the loan through a portion of its rent or with a prepayable five-year loan without any penalties.
Expansion to Inland Locations
Iowa legalized land-based casino gaming in 2007, following an amendment in 2004 that allowed commercial gambling on permanently moored barges.
Of the 19 commercial casinos in Iowa, only Lakeside Hotel Casino and Ameristar remain riverboat-based. The newest casino in the state, Cedar Crossing Casino in Cedar Rapids, is a brick-and-mortar development scheduled to open in November.
Penn Entertainment has invested in transitioning its riverboat casinos inland not just in Iowa but also in states like Louisiana and Illinois where land-based casinos are prevalent.
“Together with our recent announcement in New Orleans, we are committed to pursuing organic growth opportunities to enhance Penn’s competitive position in our markets nationwide,” stated Snowden.
History of Ameristar
Ameristar Casinos, based in Nevada, opened Ameristar Casino Council Bluffs in January 1996.
Pinnacle Entertainment acquired the 38,500-square-foot riverboat as part of its purchase of Ameristar Casinos in 2013. Penn Entertainment acquired Pinnacle in 2018 for $2.8 billion in cash and stock.