CRC Holdings merger advances

Thursday, April 19, 2001 | 11:14 a.m.

JACKSON, Miss. -- The Mississippi Gaming Commission has OK'd a critical step in Penn National Gaming Inc.'s plan to take over a Florida company and its stake in a Baton Rouge casino.

Penn National Gaming, which owns Casino Magic casino and hotel in Bay St. Louis and Boomtown casino in Biloxi, is in the final stages of buying Florida-based CRC Holdings Inc.

Closely held CRC Holdings is the majority owner of the Casino Rouge riverboat in Baton Rouge. Penn also is buying Casino Rouge's minority owners. The total deal is worth $200 million.

At a special meeting Wednesday, the Mississippi commission approved CRC Holdings to act as a subsidiary of Penn National, which is based in Wyomissing, Pa. The approval was needed because CRC Holdings would be involved in the operations of Casino Magic and Boomtown.

The Louisiana Gaming Control Board last month approved Penn National's purchase of Casino Rouge. Penn National reportedly will pay $95.7 million to buy out CRC Holdings and $10.8 million apiece to three minority owners.

archive