After 30 Years: $200M Hollywood Casino to Replace Riverboat Facility in Iowa

A new Hollywood Casino is coming to Council Bluffs, Iowa, with PENN Entertainment breaking ground on a project that will replace the aging Ameristar riverboat casino and add several new amenities to the property. Investment of Up to $200 Million The development is expected to cost between $180 million and $200 million and is currently scheduled to open in 2028. The new casino will be, therefore, built as a replacement for the existing riverboat facility on the Missouri River across from Omaha, giving the Council Bluffs property a significantly different layout and appearance. The project will also include a parking garage and several new restaurants. Hollywood Council Bluffs General Manager Paul Czak said the new complex will have a more modern feel than the current property. PENN Entertainment chief executive officer and president Jay Snowden commented on the event: “We are thrilled to be celebrating yet another transition from riverboat gaming to a new best-in-class entertainment destination.” The groundbreaking took place on September 14, bringing together representatives from PENN, local officials and community organizations. Among those attending were Council Bluffs Mayor Jill Shudak, Penn Entertainment Senior Vice President of Regional Operations Aaron Rosenthal, and Iowa West Foundation President and CEO Brenda Mainwaring. Focus on Casino with 1,000 Slot Machines and 25 Live Game Tables The development will transform a property that has been part of the Council Bluffs casino market for years. Penn will replace the existing Ameristar riverboat with a new land-based venue designed around updated casino, dining, and amenities for patrons. The casino will, as expected, represent the centerpiece of the new complex, making room for the first Shake Shack in the Omaha metropolitan area, while a fast-casual Asian restaurant called Red Lotus is also planned as part of the development. The land-based casino will have more than 1,000 slot machines and 25 live dealer table games. It will be connected to the existing 160-room hotel and the property’s other amenities, including The Sportsbook Restaurant and Bar, 1853 Bistro and Steakhouse, Club 38 VIP Lounge, and the Buffet. Penn Entertainment said the project is expected to create around 450 construction jobs and add 50 permanent positions to the casino’s current workforce of more than 500 employees. Construction is expected to take between 18 and 24 months. The project is also being supported financially by PENN’s landlord, Gaming and Leisure Properties, which has agreed to provide up to $150 million in financing at a capped interest rate of 7.1%. PENN can repay the financing through part of its rent obligations or use a five-year loan that can be paid off early without a penalty. The Hawkeye State officially legalized casino gambling at brick-and-mortar venues in 2007, three years after the state’s decision to amend the 1989 riverboat law to enable commercial gambling on permanently moored barges. Of a total of 19 commercial casinos in the state, only Lakeside Hotel Casino and Ameristar are based on land, with the rest representing riverboat casinos. Iowa is also getting ready to usher in another land-based facility, Cedar Crossing Casino, in November.