Penn Gaming Backs Out of Rosecroft Buy

WYOMISSING, PA-Penn National Gaming Inc. will not proceed with its previously announced agreement to acquire Rosecroft Raceway in Fort Washington, MD from Cloverleaf Enterprises Inc. The locally based casino and racetrack owner signed a binding letter of intent to acquire the asset in August and proceeded with a definitive agreement for the purchase the following month.

In a statement Penn National attributes its decision to not proceed with the acquisition to new legislation signed by Maryland Gov. Martin O’Malley on Nov. 19. While the legislation authorizes up to 15,000 video lottery terminals at five locations in the state, subject to a November 2008 voter referendum, it specifically excludes Prince George’s County where Rosecroft operates.