Lakes Entertainment Invests In Penn
Penn National Gaming (PENN: 29.65 +2.74%) has cut a deal with former rival Lakes Entertainment Inc. to invest in the companies two proposed casinos to be developed in Ohio.
Under the agreement Lakes agreed to pay Penn National and Cleveland Cavaliers owner Dan Gilbert, 10 percent of the cost of the ballot initiative. In exchange Lakes Entertainment has the option, but not the obligation to a 10 percent share in the casinos profits.
The duo paid over $35 million dollars to campaign for the constitutional amendment, Issue 3, allowing the gaming expansion in Ohio.
Lakes Entertainment was the main support of last years failed initiative to legalize casino gambling in Ohio.
On Wednesday the company filed with the U.S. Securities and Exchange Commission, that an initial payment of $1.9 million was paid to Penn Ventures, a subsidiary of Penn National Gaming.
Representatives for Penn emphasized that Berman will only be a passive investor in the casinos and “he will play no active role.”
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