Pinnacle Acquires Sands Casino

Pinnacle Entertainment will buy The Sands hotel-casino and a neighboring property in Atlantic City, N.J., for about $250 million, the company announced September 5th.

Terms of the deal require Pinnacle to pay another $20 million for tax-related benefits and additional real estate. In turn, the sellers, including financier Carl Icahn, must shutter the 26-year-old Sands, which will be torn down to make way for a larger hotel-casino at the site.

The historic casino, one of the first to open in Atlantic City and its smallest, will be closed within 70 days of signing the agreement. Employees are to be given 60 days notice of closing and severance packages.

“Atlantic City is one of the top U.S. gaming destinations, and we’re looking forward to being a part of the world-famous Boardwalk,” Pinnacle Chairman and CEO Daniel Lee said in a statement. “This major new resort will be a key component in our plan to build a national network of gaming properties.”

The deal is expected to close by the end of the year.

Las Vegas-based Pinnacle owns and operates casinos in Nevada, Louisiana, Indiana, Argentina and the Bahamas among its various holdings.