PENN Entertainment has started construction on a $180 million to $200 million land-based casino in Council Bluffs, Iowa, advancing another conversion of an aging riverboat operation into a modern regional gaming property.
The company held the groundbreaking ceremony for Hollywood Casino Hotel Council Bluffs on September 14, 2026. The proposed casino will replace the adjacent Ameristar Council Bluffs riverboat and is expected to open in 2028, subject to customary regulatory approvals.
Plans include approximately 1,000 slot machines, 25 live table games, two new restaurants and direct access to the existing hotel and entertainment facilities. PENN expects construction to require between 18 and 24 months.
The investment is substantial, but it does not create a completely new casino market. PENN is relocating an existing operation within a competitive Council Bluffs gaming corridor where Ameristar, Harrah’s and Horseshoe already compete for customers from western Iowa and the Omaha metropolitan area.
Hollywood Casino Council Bluffs Breaks Ground
PENN announced the project on September 10 and scheduled the ceremonial groundbreaking for four days later.
According to the company’s official Hollywood Casino Council Bluffs announcement, the new property will become the 20th Hollywood-branded gaming facility in PENN’s portfolio.
The land-based casino will connect to the existing pavilion and hotel complex. Customers will retain direct access to more than 160 hotel rooms, 1853 Bistro and Steakhouse, The Sportsbook Restaurant and Bar, Club 38 VIP Lounge and the property’s buffet.
Two additional dining concepts are planned. The development is expected to introduce the first Shake Shack in the Omaha metropolitan area and Red Lotus, a fast-casual restaurant focused on made-to-order Asian dishes and noodles.
| Project Component | Reported Plan |
|---|---|
| Estimated investment | $180–$200 million |
| Planned opening | 2028 |
| Construction period | Approximately 18–24 months |
| Slot machines | Approximately 1,000 |
| Live table games | 25 |
| Existing hotel access | More than 160 rooms |
| Construction employment | Approximately 450 jobs |
| Additional permanent employment | Approximately 50 jobs |
| Existing property workforce | More than 500 employees |
The final cost and opening date remain projections rather than guarantees. Construction schedules, financing conditions and regulatory approvals could still affect the project before it begins operating.
PENN Is Replacing A Riverboat Rather Than Adding A New License
Hollywood Casino Council Bluffs will replace the Ameristar riverboat casino currently operating beside the project site.
That distinction matters when assessing the development’s effect on Iowa’s gaming market. PENN is not proposing an additional casino license that would place another operator into Council Bluffs. It is moving an established licensed operation from a riverboat into a purpose-built landside facility.
Riverboat gaming played an important role in the expansion of commercial casinos across the Midwest. Over time, however, states began allowing operators to move gaming floors onto land while retaining the licensing structures created for riverboats.
A landside building can provide more flexibility than a vessel. The operator can develop a single integrated layout, improve connections between gaming and nongaming amenities and avoid maintaining infrastructure designed around an older riverboat format.
The new casino is also expected to use a different brand. Ameristar Council Bluffs will become Hollywood Casino Hotel Council Bluffs, placing the property within one of PENN’s principal retail casino groups.
Branding alone will not determine whether the relocation succeeds. Customers will judge the property by accessibility, game availability, service, dining, security and how easily they can move between the casino, hotel and other amenities.
The Project Extends PENN’s Landside Conversion Strategy
Council Bluffs is part of a wider PENN strategy to replace older regional riverboat casinos with land-based Hollywood properties.
The company previously completed Hollywood Casino Joliet in Illinois in 2025 and Hollywood Casino Hotel Aurora in 2026. It has also proposed relocating Boomtown Casino & Hotel New Orleans from its current riverboat into a new landside development in Louisiana.
As examined in gclubgod.com’s report on PENN’s proposed $195 million casino in Jefferson Parish, the New Orleans-area project would also combine a riverboat relocation with a Hollywood Casino rebranding.
The two developments share a broad strategy but serve different markets.
Council Bluffs already forms part of a concentrated casino corridor next to Omaha. PENN’s Louisiana proposal would serve the West Bank of Jefferson Parish and compete within the wider New Orleans regional market.
Both projects suggest that PENN sees more value in upgrading existing licenses than in relying indefinitely on older riverboat infrastructure. This approach can preserve an established market position while creating a more modern property without depending on approval for an entirely new casino.
It can also reduce some development uncertainty because the operator begins with an existing customer database, workforce and regulatory relationship.
That does not remove market risk. A newer casino must still generate enough additional revenue and customer activity to justify the capital invested in the conversion.
The Casino Will Compete Inside An Established Regional Market
Council Bluffs is not an isolated gaming destination. It sits across the Missouri River from Omaha, Nebraska, and already contains multiple commercial casinos.
Ameristar competes with Caesars Entertainment’s Harrah’s Council Bluffs and Horseshoe Council Bluffs. Visitors can compare several gaming floors, restaurants, hotels and entertainment options within a relatively small geographic area.
August 2026 data placed Ameristar II among Iowa’s stronger revenue-producing properties. The casino generated approximately $11.3 million during the month, while Horseshoe Council Bluffs produced about $12.4 million.
The Iowa Racing and Gaming Commission’s gaming-revenue reports provide monthly facility-level figures for slots and table games. The regulator also notes that, beginning with July 2026 reports, adjusted gross revenue no longer includes promotional-play receipts.
That reporting change should be considered when comparing current results with earlier periods. A difference in reported revenue can reflect both business performance and changes in the way the state defines the reported figure.
The new Hollywood property will therefore open in a market where customers already have alternatives. PENN will need to persuade existing visitors to use the upgraded casino more frequently while attracting customers who currently choose competing properties.
A larger or newer building cannot accomplish that by itself. The game mix, restaurant quality, loyalty benefits and service standards will influence whether the relocation creates sustained revenue growth.
Slots Will Remain The Core Of The Gaming Floor
PENN plans to install approximately 1,000 slot machines and 25 live table games.
That inventory makes slots the clear center of the proposed casino. The ratio reflects the economics of many regional gaming properties, where electronic gaming machines account for most floor positions and often generate the majority of casino revenue.
Slots can operate continuously without requiring one dealer for every game. They also allow an operator to offer multiple denominations, themes and volatility profiles across a large floor.
Table games serve a different role. Blackjack, roulette, craps and poker-style games can add social interaction and attract customers who do not want an exclusively machine-based experience. However, they involve higher staffing requirements and occupy more space per active position.
The final mix will matter for both revenue and customer experience. Placing approximately 1,000 machines into a modern building could improve circulation and visibility, but floor design should not encourage confusing navigation or obscure access to exits, support desks and responsible-gaming information.
Customers should also be able to identify game rules, denomination settings and available account controls without navigating misleading interfaces.
Dining Is Part Of The Competitive Strategy
The addition of Shake Shack and Red Lotus shows that PENN is treating food and beverage as part of the casino’s competitive position rather than as a secondary convenience.
Regional casinos increasingly compete for customers who may visit for dinner, entertainment or a hotel stay without spending their entire trip on the gaming floor. A recognizable restaurant can attract traffic and encourage longer visits, although restaurant activity does not automatically translate into higher gambling revenue.
The Omaha metropolitan area provides a broader customer base than Council Bluffs alone. The proposed Shake Shack could generate attention because it would be the brand’s first location in the metro area.
Red Lotus provides a different dining format built around quicker service. Together, the two additions could widen the property’s appeal and reduce dependence on one restaurant category.
PENN will also retain the existing restaurants and hotel connections. That allows the project to combine new construction with amenities that are already operating rather than rebuilding the entire resort complex.
The strategy reduces duplication, but the connection between new and existing spaces must feel intentional. Customers should not encounter an upgraded casino attached to hotel corridors or public areas that are difficult to navigate.
Financing Could Cover Most Of The Project’s Lower Estimate
PENN has said it may obtain up to $150 million in project financing from Gaming and Leisure Properties.
The financing could be structured as additional rent or as a five-year loan that PENN could repay early without a penalty. The stated capitalization rate is 7.10%.
At the lower end of the estimated construction range, $150 million would represent most of the project’s $180 million cost. At the upper end, PENN would still need to fund or finance the remaining amount through other resources.
This structure reflects the close relationship between casino operators and gaming-focused real estate investment trusts. Gaming and Leisure Properties owns casino real estate and leases properties to operating companies, including PENN.
Such arrangements can reduce the amount of capital an operator must commit immediately. They also create long-term rent or financing obligations that must be supported by the property’s future cash flow.
The new casino must therefore do more than attract attention during its opening period. It needs to produce durable operating results sufficient to cover staffing, maintenance, financing and property-related commitments.
Iowa’s Nonprofit Sponsorship Model Remains Part Of The Project
Commercial casino operations in Iowa require a relationship with a qualified nonprofit sponsoring organization.
Ameristar’s nonprofit sponsor is the Iowa West Racing Association. The organization also sponsors Harrah’s Council Bluffs and holds the license connected to Horseshoe Council Bluffs.
The Iowa West Racing Association’s history and licensing role explains that the organization was established after Iowa required gaming licenses to be held or sponsored by nonprofit entities. Ameristar and Harrah’s pay license fees to the association.
This creates a relationship between casino activity and local nonprofit funding that differs from a conventional state-tax-only model.
The association’s role does not mean every dollar generated by the casino moves directly into community programs. Casino revenue passes through operating expenses, taxes, contractual payments and other financial obligations before nonprofit distributions are considered.
Still, the structure gives the Council Bluffs project a civic dimension beyond construction employment. If the new property strengthens the licensed casino operation, it could also affect the resources associated with its nonprofit sponsorship arrangement.
The most useful evaluation will compare actual distributions and community projects after opening rather than relying exclusively on economic-impact projections announced during construction.
Employment Benefits Need To Be Measured After Opening
PENN says the existing riverboat employs more than 500 people. Construction of the replacement casino is expected to create approximately 450 temporary jobs, while the completed development could add around 50 permanent positions.
Those numbers describe different kinds of employment.
Construction jobs exist primarily during the building phase. Permanent casino positions continue after opening and may include gaming operations, food service, security, maintenance, hospitality and administration.
The relocation must also protect continuity for the existing workforce. PENN will need to manage the transition from Ameristar to Hollywood Casino without unnecessarily disrupting employees who support the current operation.
Job counts alone do not establish employment quality. Wages, benefits, scheduling stability, training, workplace safety and opportunities for advancement determine whether the project produces durable workforce value.
Local officials and residents should also monitor whether new positions go to existing Council Bluffs-area workers and whether the casino purchases goods and services from regional suppliers.
The New Property Must Improve More Than Its Appearance
A modern casino can provide better circulation, newer infrastructure and stronger connections to restaurants and hotel rooms. Those improvements can matter to customers and employees.
However, a landside relocation should not be treated as successful merely because the building is newer than the riverboat it replaces.
PENN will need reliable payment systems, secure customer accounts, accessible responsible-gaming resources and clear loyalty-program terms. Surveillance and age-verification procedures must also expand with the larger and more integrated property.
The approximately 1,000 slot machines will require ongoing technical maintenance and regulatory testing. Table-game operations will need sufficient staffing, training and security. Restaurants must function as real amenities rather than decorative additions surrounding the gaming floor.
Accessibility should also extend beyond physical building design. Game information, customer-service processes and player-protection tools should be understandable to people with different levels of casino experience.
The Real Test Arrives When Hollywood Casino Opens In 2028
The September groundbreaking begins a development period expected to last between 18 and 24 months.
During that time, PENN must operate the existing Ameristar riverboat, construct the replacement facility and coordinate the eventual transition to the Hollywood Casino brand. The company must also manage financing and complete the regulatory steps required before opening.
The project has several advantages. PENN already possesses a market presence, more than 500 employees, an existing hotel complex and a customer base familiar with the Council Bluffs location.
It also faces meaningful constraints. Council Bluffs already has established casino competition, Iowa’s wider gaming market is mature and the project may ultimately cost as much as $200 million.
The strongest measure of success will not be the size of the opening crowd. It will be whether the landside casino produces sustainable revenue, retains employees, supports its nonprofit relationship and provides a measurably better experience than the riverboat it replaces.
