Penn Entertainment Breaks Ground on $200 Million Hollywood Casino in Council Bluffs

Penn Entertainment is significantly modernizing its portfolio, having officially commenced construction on the new Hollywood Casino in Council Bluffs. A groundbreaking ceremony held on Monday signaled the start of the land-based project, which will replace the existing Ameristar Council Bluffs riverboat casino. The decision to move from water to land is part of a larger corporate strategy to generate organic growth across the United States and solidify market positioning against regional competitors. The new facility promises not only an enhanced player experience but also more efficient operations on a single level.

The project represents a clear commitment to the Iowa market and the neighboring Omaha area. By integrating with the existing pavilion and the 160-room hotel, a comprehensive entertainment destination is being created. During the construction phase, estimated to last 18 to 24 months, the company expects to employ approximately 450 construction workers. Upon completion, the workforce is projected to grow by about 50 additional permanent employees, highlighting the project's local economic significance. Approval from the Iowa Racing and Gaming Commission and an extended partnership with the Iowa West Racing Association provided the legal foundation for this expansion.

Numbers and facts

The financial parameters of the construction project are substantial. Penn Entertainment estimates a budget between $180 million and $200 million. The new gaming floor will cover approximately 58,000 square feet and accommodate 1,000 slot machines along with 25 live table games. A central element will remain the existing ESPN BET sportsbook, which will be integrated into the new structure. For financing, Penn has the option to draw up to $150 million from Gaming and Leisure Properties (GLPI) at a 7.1 percent cap rate. These funds can be structured as either rent or a five-year term loan, providing the company with high financial flexibility.

„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.“ - Jay Snowden, CEO and President of Penn Entertainment

Background

The relocation in Council Bluffs is Penn Entertainment's third landside move in recent years. Previously, Hollywood Casinos in Joliet and Aurora, both in Illinois, were successfully transitioned to land. In Aurora, the company invested $360 million to create a new destination directly off Interstate 88. These trends show a shift away from historical riverboat regulations, which were originally introduced in many US states as a compromise during the legalization of gambling. Modern laws now allow operators to overcome the logistical disadvantages of vessels, opting instead for accessible, single-story casino complexes.

Todd George, Executive Vice President of Operations at Penn, emphasized that this project will enhance the quality and efficiency of the Council Bluffs location. The integration into the PENN Play loyalty program, with over 32 million members, plays a crucial role in its success. The local community also benefits directly. Brenda Mainwaring, President & CEO of the Iowa West Racing Association, noted that the Ameristar riverboat has contributed millions of dollars in community support over nearly three decades, and the new investment will continue this tradition.

Why it matters for German players

For German players, the new construction in Iowa has no direct impact on their daily lives in local gaming halls or online casinos. However, the development is interesting as it demonstrates how established gambling corporations like Penn Entertainment transform their brand worlds. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) strictly regulates the market. While US casinos rely on massive floors with thousands of slots, German online offerings are limited to a stake limit of 1 Euro per round and a monthly deposit limit of 1,000 Euro via the LUGAS system. Anyone wishing to play legally in Germany should stick exclusively to providers on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL).

What it means for GGL-licensed casinos

The international expansion plans of giants like Penn show that the ESPN BET brand is playing an increasingly large role in the global ecosystem. For GGL-licensed operators, this represents indirect competitive pressure through strong international brand identities. While massive investments flow into land-based infrastructure in the US, the focus in Germany is on technical security, player protection, and compliance with the strict OASIS exclusion database. German providers must distinguish themselves through excellent service and absolute transparency, as the regulatory framework here is much narrower than in US states like Iowa or Illinois. Innovations at Penn Entertainment in linking media content and betting could eventually serve as a model for German licensees, provided they comply with local advertising laws.