Pennsylvania-headquartered casino major Penn Entertainment, Inc. (Nasdaq: PENN) has plans to retire its long-standing Ameristar Casino riverboat in Council Bluffs and invest up to $200 million in building a new, land-based Hollywood Casino.
The development that was approved by the Iowa Racing and Gaming Commission on 24 April 2025 marks a major shift for Penn Entertainment as it responds to growing competition from new casinos across the state line in Nebraska. The project also extends the company’s partnership with the Iowa West Racing Association (IWRA) — a key nonprofit sponsor required under Iowa gaming regulations — for another 15 years.
The new property, to be called Hollywood Casino Council Bluffs, will feature approximately 125,000 square feet of development, including 58,000 square feet of single-level gaming space and more than 1,000 gaming positions. It will also continue to offer the ESPN BET sportsbook, 160-room hotel, and multiple dining options, all housed in the land-side portion of the current complex.
Construction is expected to take 18 to 24 months once design and permitting are finalised.
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From river to land
Penn’s Executive Vice President of Operations, Todd George, said that the relocation is part of a broader effort to streamline operations and strengthen the company’s position in the greater Omaha market.
“This project will enhance the quality and efficiency of our Council Bluffs location and significantly improve the property’s competitive positioning,” said George. “We thank the Iowa Racing and Gaming Commission for their approval today and are grateful for the continued collaboration with our partners at the Iowa West Racing Association.”
The current Ameristar Casino, operating on the Missouri River since 1996, spans three levels aboard a riverboat. It will be decommissioned upon the opening of the new Hollywood-branded facility.
Financing the future of Iowa gaming
To support the new project, Penn has secured an option to finance up to $150 million through Gaming and Leisure Properties, Inc. (Nasdaq: GLPI). This funding could be structured either as a long-term lease or a five-year loan at a 7.10 percent cap rate, with the flexibility for prepayment without penalty.
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Brenda Mainwaring, President and CEO of the IWRA, praised Penn’s continued investment in the community.
“For nearly thirty years, the Ameristar riverboat has provided dining, entertainment, and jobs — and has helped support local charities,” she said. “We are thrilled with the exciting development plans and grateful for our ongoing partnership.”
The IWRA, which receives a portion of gaming revenues for local charitable distribution, has played a major role in shaping Council Bluffs’ entertainment economy.
Hollywood brand expansion continues
The new development will result in a name change from Ameristar Casino Hotel Council Bluffs to Hollywood Casino Council Bluffs. The company will continue operating three remaining Ameristar-branded casinos elsewhere in the U.S.
With a presence in 28 jurisdictions, Penn Entertainment is one of North America’s largest providers of integrated gaming and entertainment. The company is also building out a digital media and sports betting ecosystem through its ESPN BET partnership and theScore brand in Canada.
