Penn National spin-off to buy Meadows harness track

A real-estate holding company spun off from Penn National Gaming Inc. has reached an agreement to buy the Meadows harness track and casino in Pennsylvania for $465 million, the company announced Wednesday.

Gaming and Leisure Properties, the real-estate investment trust spun off from Penn National last year to take advantage of tax laws, will use stock and debt to buy the property currently owned by Cannery Casino Resorts. Gaming and Leisure said in a release that it will name a third-party operator to run the casino and resort located just outside of Pittsburgh.

The Meadows operates one of the 13 casinos located in Pennsylvania. Six of the casinos are located at racetracks, which use approximately $250 million annually in subsidies from the casinos for purses and breeders’ awards.

The acquisition, expected to close in 2015, is the first for Gaming and Leisure. Penn National is one of the country’s largest casino and racetrack operators. Among its racetracks are Penn National in Pennsylvania, Charles Town in West Virginia, Zia Park in New Mexico, and Beulah Park in Ohio.