Penn Entertainment Breaks Ground on $200M Land-Based Resort in Iowa

Penn Entertainment officially broke ground on September 14, 2026, on a transformative $180 million to $200 million land-based casino resort in Council Bluffs, Iowa, marking yet another operator's shift away from riverboat gaming toward brick-and-mortar facilities in the Midwest.

The new Hollywood Casino Hotel Council Bluffs will replace the existing Ameristar Casino, which has operated as a riverboat on the Missouri River since January 1996. Once completed, Ameristar will be rebranded under the Hollywood Casino banner. The facility is expected to take 18 to 24 months to complete, with Penn anticipating the creation of 450 construction jobs and 50 permanent positions added to the current workforce of more than 500 employees.

The gaming footprint will expand significantly. The land-based casino will house 1,000 slot machines and 25 live dealer table games, all connected to the existing 160-room hotel and complementary dining and entertainment venues including the Sportsbook Restaurant and Bar, 1853 Bistro and Steakhouse, Club 38 VIP Lounge, and a buffet. The development will also introduce the first Shake Shack location in the Omaha metropolitan area and Red Lotus, a fast-casual Asian dining concept.

Financing for the project was secured through Gaming and Leisure Properties, Inc., Penn's landlord, which is offering up to $150 million at a capped rate of 7.1%. Penn has flexibility in repayment structure, with the option to pay the loan through rent contributions or a five-year loan prepayable at any time without penalty. This financing arrangement reflects the strategic partnership between operator and real estate investment trust that has defined Penn's recent capital structure.

The Council Bluffs project represents Penn's continued commitment to organic growth within its existing market footprint. CEO Jay Snowden emphasized the company's disciplined approach to strengthening competitive positioning, noting that this investment follows Penn's recent announcement of a New Orleans expansion. Penn has pursued similar riverboat-to-land conversions across multiple states where regulatory frameworks permit, including Louisiana and Illinois.

Iowa's regulatory environment has evolved significantly since commercial gaming legalization in 2007. The state amended its 1989 riverboat statute in 2004 to allow permanently moored barges, and then authorized land-based casinos in 2007. Today, 17 of Iowa's 19 commercial casinos operate as land-based facilities. Only Lakeside Hotel Casino and the current Ameristar remain as riverboat operations. Cedar Crossing Casino in Cedar Rapids, another land-based development, is slated to open in November 2026, signaling continued modernization of Iowa's gaming portfolio.

Penn's strategy reflects a broader industry pattern: as operators mature their portfolios and capital becomes available, converting underperforming or legacy riverboat assets into modern resort destinations offers a pathway to revenue growth without requiring new gaming licenses. The Council Bluffs project demonstrates that even in mature Midwest markets, significant reinvestment can signal operator confidence in long-term regional viability.