Less than a week before the close of the long-planned Argosy deal, the Illinois Gaming Board remained the sole holdout in granting approval of the transaction. In order to gain approval, Penn National, which operates Hollywood Casino in Aurora, IL, offered to sell the Argosy Illinois assets, "to overcome any concerns the board might have about concentrations of casino ownership in Illinois," a Penn National spokesman said at the time. The offer was made, "even though the IGB never publicly expressed such concerns," he added. Five days later, IGB granted its approval.

"We did what we had to do to get to the closing," said Peter M. Carlino, Penn National's CEO. "It's something we did not want to do." At the time, he also said, "there may be options. We're looking at closely and we hope to work with the board."

Yesterday, IGB relented. While retaining the Alton facility, Penn National has until June 30, 2008 to reach a definitive sale agreement for the Joliet asset. The previous deadline was Dec. 31, 2006.

"We appreciate the cooperative and patient approach that members of the Illinois Gaming Board have taken during this process and are delighted that they have agreed to allow Penn National to keep the Argosy Casino-Alton property," Carlino says in a statement. "We look forward to being a long-term member of, and contributor to the Alton business community." He also acknowledged IGB's willingness to extend the length of time to dispose of the Joliet property. No potential buyers have been identified for Empress Casino Joliet.

Penn National was required to sell one other asset from the Argosy portfolio. The Federal Trade Commission's approval of the Argosy acquisition stipulated that Penn National sell Argosy's Baton Rouge, LA facility. Fort Mitchell, KY-based Columbia Sussex acquired that asset for $150 million.