Australian firm to buy Cannery Casino Resorts

2007-12-13 15:18:06

Australian casino company Crown has agreed to buy Cannery Casino Resorts in the US for $1.75 billion.

The assets include the Cannery Casino and Hotel, the Nevada Palace Casino and the Meadows Racetrack & Casino in Pittsburgh.

Crown's existing North American investments include a 50 per cent share of Gateway Casinos Income Fund in Canada and 19.6 per cent stake in Fontainebleau Resorts.

"They've been looking to expand in the US and this is where they see their opportunity," said Sean Fenton, a fund manager at Jenkins Investment Management.

This latest investment means that Crown has more than doubled its gambling interests in North America.

Crown also wants to expand in Europe, where it already has a half stake in the Aspinalls casino business in the UK.