Pennsylvania’s largest casino company is getting even bigger.Penn National Gaming announced Monday it is planning to buy competitor Pinnacle Entertainment Inc. in a cash-and-stock deal worth close to $2.8 billion.

Once the deal jumps through the usual regulatory hoops, Pinnacle shareholders are going to receive $20 in cash and 0.420 shares of Penn National stock per share.

After the deal is complete, Penn National Gaming shareholders will own 78 percent of the company. Pinnacle shareholders will hold the other 22 percent. The combined company will be one of the largest casino companies in the entire country. There is no indication Penn National plans to leave its Pennsylvania home.

Boyd Gaming buying the Ameristar casinos

As a part of the transaction, Penn will sell the gaming operations of four existing Pinnacle properties to Boyd Gaming Corp. for $575 million in cash. The selloff is reportedly in order to meet regulatory requirements in the areas where these casinos operate.

The casinos include:

  • Ameristar Kansas City
  • Ameristar St. Charles
  • Belterra Park
  • Belterra Casino Resort

There is also a leaseback deal in the works involving Belterra, Boyd Gaming, and Penn National real-estate spin-off Gaming and Leisure Properties. However, Boyd Gaming says its end of the entire deal is not likely to close until the second half of 2018.

Boyd Gaming operates more than two dozen gambling operations across the country, including a dozen in the Las Vegas, Nevada area. Its flagship property is arguably the Orleans Hotel and Casino in Las Vegas.

Wyomissing’s Penn National Gaming

Wyomissing, PA is home to Penn National Gaming’s headquarters. Prior to this Pinnacle deal, the company owned and operated 26 casino properties in the US and managed one in Canada. Of course, this includes the Hollywood Casino at Penn National Race Course in Grantville, PA.

The Hollywood Casino brand is Penn National Gaming’s largest. In fact, it owns and operates Hollywood Casino properties in seven other states:

  • California
  • Illinois
  • Indiana
  • Kansas
  • Mississippi
  • Missouri
  • Ohio

It also owns the M Resort in Henderson, Nevada and Tropicana Las Vegas on the Las Vegas Strip.

Reutersreported that once the Pinnacle deal is done, Penn National Gaming will operate a combined 41 casino properties. These properties include more than 53,000 slot machines and 1,300 table games. They also include more than 8,300 hotel rooms.

Nevada’s Pinnacle Entertainment

Pinnacle Entertainment is headquartered in Spring Valley, Nevada. The company operates 16 casinos in nine states as well as a horse track in Texas.

This included The Meadows Racetrack and Casino in Washington County, PA.

The casino and racetrack property was bought by Penn National Gaming real-estate spin-off Gaming and Leisure Properties in 2015. However, Pinnacle inked a $138 million deal with Gaming and Leisure to run the casino at the property in 2016.

Pinnacle Entertainment’s largest casino brand is Ameristar. Ameristar properties can be found in:

  • Colorado
  • Iowa
  • Indiana
  • Mississippi
  • Missouri

Rumors of a Penn National-Pinnacle merger began to surface in October of this year when the Wall Street Journal reported both sides were in discussions.

Both companies refused to comment as stock prices soared.