The gains came partially from the company's acquisition of three former Hollywood Casinos in Aurora, IL; Tunica, MS; and Shreveport, LA, although a majority of facilities owned by Penn National for more than a year also experienced gains in operating incomes. The exceptions were its racing operations in PA and NJ, which were impacted by bad winter weather.
During a conference call, CEO Peter M. Carlino said he was "cautiously optimistic" about the prospects for legalized slot machines at racetracks in PA. Gov. Ed Rendell is a strong supporter of the legislation, and a vote could come as early as this month.
Penn National owns two racetracks in the state and has applied for the right to open a third. Carlino acknowledged that lobbying Harrisburg for passage of the slots legislation is "an everyday thing" with his company.
He also acknowledged that Penn National has preliminary designs for buildings to accommodate slots. Pressed to put a dollar figure on the investment the company would make at its PA tracks if the legislation passes, Carlino said it would be in the area of $100 million and could be more or less.
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