Penn National Thought Among Maryland Slot Bidders
Bids were accepted today for potential operators for the five newly-created Maryland gambling sites, and Penn National Gaming (PENN: 24.05 -0.66%) is thought to be among the six companies offering bids.
Penn officials had previously expressed interest in the Cecil County license, and the casino operator is known to be among the most liquid of gaming companies, having amassed cash from an aborted attempt to go private last year.
Penn also is involved in operations of this style around the US, and has withdrawn from commitments to Kansas to construct and run a casino there, leaving funding on the table for investing in Maryland.
Maryland’s auction of the five slot licenses drew less attention than hoped, according to a report by the Washington Post. This was blamed not only on the recession and credit difficulties, but also an extremely low thirty-three percent of revenues earmarked for the operators. Further, investment of at least $25 million for every five hundred slots is required, causing some locations to carry a price over $200 million.
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