Penn Entertainment has officially received approval from the Iowa Racing and Gaming Commission for an ambitious $180-200 million project that will transform their gambling operations in Council Bluffs. The company plans to relocate its longtime Ameristar Casino Hotel riverboat operations to a new land-based facility that will be rebranded as Hollywood Casino Council Bluffs. This strategic shift marks a significant evolution in the Iowa gaming landscape and represents Penn’s commitment to modernizing its offerings in response to changing market dynamics and increased regional competition.
A Historic Transition from River to Land
The Ameristar riverboat casino has been a fixture on the Missouri River since 1996, embodying an era of gambling that once defined the Midwest’s approach to casino gaming. For nearly three decades, the multi-level floating casino has served the Council Bluffs community and attracted visitors from across the region. However, the aging vessel is now set to be vacated when the new land-based facility opens, marking the end of an important chapter in Iowa’s gaming history.
Riverboat casinos were once the only legal form of casino gambling in many Midwestern states, including Iowa. These floating venues were initially required to conduct regular cruises along the river, a mandate that was eventually phased out as regulations evolved. The transition away from riverboat operations has been a consistent trend across the industry for years, driven by practical operational concerns as much as by shifting consumer preferences.
The operational challenges of maintaining riverboat casinos have become increasingly apparent over time. As Bo Guidry, general manager of the nearby Harrah’s riverboat casino in Council Bluffs, explained in a similar transition over a decade ago:
The boat itself is 18-years-old and as it continues to get older, there is a lot more upkeep, repairs and maintenance that need to happen. In addition to that, it’s extremely expensive to keep it afloat. We have to spend between three and four thousand dollars a year just to dredge around the boat to keep it afloat. And then last year, we had obviously the floods in the area that caused a lot of concerns. And insurance continues to rise.
These same practical considerations have undoubtedly factored into Penn’s decision to make this transition.
Hollywood Casino’s Ambitious Design and Features
The upcoming Hollywood Casino Council Bluffs represents a significant upgrade from the current riverboat operation. Plans for the new facility include approximately 125,000 square feet of new development, with an impressive 58,000 square feet dedicated to gaming space. Unlike the current riverboat that spreads gaming across three separate levels, the new casino will consolidate all gambling activities onto a single floor, providing a more cohesive and accessible guest experience.
The gaming floor will accommodate more than 1,000 positions, likely including a mix of slot machines, table games, and poker tables. The land-based property will be strategically integrated with existing amenities at the current Ameristar location, preserving popular features that have drawn visitors for years.
Notably, the project will complement and maintain the existing 160-room hotel tower, which will continue providing accommodations for casino guests. The newly established ESPN BET sportsbook, which represents Penn’s partnership with the sports media giant, will remain a key attraction. Various dining options currently available at the landside portion of the facility will also be preserved, ensuring continuity in the guest experience despite the major transition.
Financial Framework and Development Timeline
The substantial investment of $180-200 million highlights Penn Entertainment’s confidence in the Council Bluffs market despite new competitive pressures. To finance this ambitious project, the company has secured an advantageous arrangement with Gaming and Leisure Properties (GLPI), a real estate investment trust that specializes in casino properties and maintains a close business relationship with Penn.
Under the financing agreement, Penn is entitled to obtain up to $150 million from GLPI at a 7.10% cap rate. This arrangement offers flexibility, as the funding can be structured either as rent or as a 5-year term loan that Penn can repay at any time without penalty, depending on what best suits the company’s financial strategy.
This financial relationship between Penn and GLPI isn’t new. In December 2020, the companies entered into similar arrangements involving Hollywood Casino Perryville in Maryland and Hollywood Casino Baton Rouge. These transactions demonstrated the ongoing strategic partnership between the two entities, with GLPI often retaining ownership of real estate assets while Penn or other operators manage the casino operations.
As for the development timeline, construction is expected to take approximately 18-24 months once the design phase is complete and all necessary permits are secured. This puts the potential opening somewhere in 2027, assuming the design and permitting processes proceed without major delays.
Strategic Significance in a Competitive Landscape
Penn Entertainment’s decision to relocate and rebrand its Council Bluffs operation comes at a time of significant change in the Midwest gaming market. The company faces growing competition from newly opened casinos across the Missouri River in Nebraska, which has begun to expand its gaming options after years of limited offerings.
Todd George, Executive Vice President of Operations for Penn, emphasized the strategic importance of this project:
We are pleased to add another landside relocation to our pipeline of development projects.
His statement indicates that this isn’t an isolated move but part of a broader company strategy to upgrade facilities across its portfolio.
The transition to land-based operations offers numerous advantages beyond just reducing maintenance costs. Modern, purpose-built facilities can provide superior guest experiences, more efficient operations, and better integration of gaming with non-gaming amenities like dining, entertainment, and retail. These improvements are increasingly necessary to remain competitive in a market where consumers have more options than ever before.
The rebranding from Ameristar to Hollywood Casino also aligns the property with Penn’s broader brand strategy. The Hollywood Casino brand is one of Penn’s most prominent, used across multiple properties in its portfolio. This consistent branding helps build recognition and loyalty among customers who may visit different Penn properties across the country.
Regulatory Process and Local Partnerships
The approval of this project by the Iowa Racing and Gaming Commission on April 24, 2025, marked a critical regulatory milestone. The Commission’s meeting in Council Bluffs addressed not only Penn’s development plans but also approved a 15-year extension of Ameristar’s partnership with the Iowa West Racing Association, a crucial nonprofit organization in the state’s gaming regulatory framework.
Iowa’s gaming regulations require all commercial casino operators to maintain operating agreements with Qualified Sponsoring Organizations (QSOs) that are licensed to conduct gaming operations. The Iowa West Racing Association has served as the QSO partner for the Ameristar casino, and this extended partnership ensures regulatory compliance for the next 15 years of operations under the new Hollywood Casino brand.
Brenda Mainwaring, President and CEO of the Iowa West Racing Association, expressed support for Penn’s commitment to the Council Bluffs community. She acknowledged the riverboat’s long history of creating jobs and supporting charitable initiatives in the area and expressed confidence that the new development would continue and enhance this positive community impact.
Penn Entertainment’s Broader Business Strategy
This project fits within Penn Entertainment’s larger corporate strategy as a diversified gaming company. Penn operates across multiple segments, including Northeast, South, West, Midwest, and Interactive divisions. The Midwest segment, which includes the Ameristar Council Bluffs operation, also encompasses Argosy Casino, other Hollywood Casino properties, Prairie State Gaming, and River City Casino operations.
Under the leadership of CEO Jay A. Snowden, Penn has been implementing an “omni-channel approach to entertainment,” combining retail operations with digital offerings. The company maintains a database of more than 32 million members in its PENN Play loyalty program, which it leverages alongside its interactive and media properties.
Founded in 1982 and headquartered in Wyomissing, Pennsylvania, Penn Entertainment has grown to employ over 23,000 people across its operations. The company generated approximately $6.58 billion in revenue according to recent financial data, though it faced challenges with a reported net income loss of $311.50 million.
The conversion of the Ameristar property to the Hollywood brand will leave Penn with three remaining Ameristar-branded properties in its portfolio, indicating a potential long-term shift toward consolidation under fewer brand names. This move appears to be part of a broader strategy to streamline operations and strengthen brand recognition across markets.
The Gaming Landscape in Iowa and the Midwest
The transition from riverboat to land-based casinos represents a broader trend across the Midwest gaming industry. When Iowa first legalized casino gambling in the early 1990s, operations were restricted to riverboats that conducted regular cruises. This requirement was eventually eliminated, allowing for “boats in moats” – permanently docked vessels that never actually sailed.
As regulations further evolved, operators began seeking permission to move entirely to land-based facilities. In 2012, Harrah’s riverboat casino in Council Bluffs pursued a similar transition to what Penn is now undertaking, citing maintenance costs, dredging expenses, flood risks, and rising insurance premiums as key motivators.
The April 2025 meeting of the Iowa Racing and Gaming Commission also addressed financial audits for numerous other casino operations in the state, including properties operated by Boyd Gaming Corporation, Caesars Entertainment, Casino Queen Marquette, Catfish Bend Casinos, and Elite Casino Resorts, demonstrating the significant gaming presence across Iowa.
For Council Bluffs specifically, the new Hollywood Casino represents continued investment in a city that has leveraged gaming as an economic development tool for decades. Located just across the Missouri River from Omaha, Nebraska, Council Bluffs has positioned itself as a gaming destination for the metropolitan area, attracting visitors from both states.
Penn Entertainment’s substantial investment signals confidence in the long-term viability of this market despite increasing competition from neighboring states. The modernized facility will help ensure that Council Bluffs remains a competitive gaming destination in the region for years to come, continuing to generate tax revenue, create jobs, and support community initiatives through its partnership with the Iowa West Racing Association.
How about Online Gaming?
Online gambling in Iowa has experienced rapid growth in recent years, particularly with the widespread adoption of online sports betting and mobile gaming platforms. While traditional casinos remain popular, the convenience and accessibility of online betting have attracted a broader audience, boosting overall gambling revenues in the state. Iowa’s regulatory environment is actively evolving to address the unique challenges and opportunities presented by internet gaming.
Recent legislative reviews are focusing on ensuring the state remains competitive, analyzing the impact of online gambling on brick-and-mortar casinos, and evaluating the effectiveness of problem gambling services. The Iowa Racing and Gaming Commission is tasked with monitoring trends, assessing the societal impacts of internet gaming, and recommending policy changes to enhance consumer safety and industry integrity. As of 2024, Iowa’s online gambling market continues to expand, mirroring global trends and contributing significantly to the state’s economy.
When it comes to cryptocurrency gambling, Iowa maintains a cautious stance. Although cashless payment systems are permitted in state-licensed casinos, the use of cryptocurrencies like Bitcoin for gambling transactions is not currently allowed under Iowa law. Regulatory bodies have expressed concerns about the anonymity of crypto transactions, which can complicate efforts to prevent money laundering and ensure the integrity of gaming operations.
While some U.S. states, such as Wyoming, have taken steps to allow digital and crypto payments in gambling, Iowa has not yet moved in this direction. As a result, residents interested in crypto gambling often turn to offshore platforms and casinos where KYC is not required, which operate outside the state’s regulatory framework and pose additional risks related to security and legality. Ongoing discussions in the industry suggest that while digital payments are becoming more common, the integration of cryptocurrencies into Iowa’s regulated gambling market remains on hold as lawmakers and regulators prioritize consumer protection and compliance with federal guidelines.
Financially, Penn Entertainment’s online gaming segment has shown strong momentum, contributing to record quarterly revenues and significant year-over-year growth. In 2024, the company reported over 60% growth in its online casino business, driven by disciplined promotional strategies and new product launches such as standalone iCasino apps in Pennsylvania and Michigan. CEO Jay Snowden highlighted the company’s focus on enhancing digital offerings, including live streaming features within the ESPN BET app and integration of major sports events like the NCAA Tournament. These innovations aim to deepen customer engagement and expand market share in the competitive online gambling landscape. Penn’s Interactive segment is a key growth driver, complementing its brick-and-mortar operations and positioning the company as a leading omni-channel entertainment provider
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