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Apr12

FTC Hearing #13: Merger Retrospectives

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The Federal Trade Commission held the thirteenth session of its Hearings Initiative, focused on the agency’s merger retrospective program, on April 12, 2019, at FTC Headquarters in Room 432. This...

Penn National Gaming and Pinnacle Entertainment, In the Matter of

The FTC required casino operators Penn National Gaming, Inc. and Pinnacle Entertainment, Inc. to divest casino-related assets in three Midwestern cities to  resolves charges that Penn’s $2.8 billion agreement to acquire Pinnacle likely would be anticompetitive. The complaint alleges that the proposed acquisition would harm competition for casino services in metropolitan St. Louis, Missouri; Kansas City, Missouri; and Cincinnati, Ohio. Casino services include gaming services such as slots and table games, as well as related lodging, entertainment, and food and beverage services, according to the complaint. Typically, casino operators generate the vast majority of their revenues from gaming. Casinos are highly regulated, with a limited number of licenses granted in any given state, as well as age restrictions on who can gamble. According to the complaint, the acquisition, if consummated, likely would eliminate direct competition between Penn and Pinnacle, increasing the likelihood that Penn would unilaterally exercise market power, and lead to higher prices and reduced quality for consumers of casino services.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
181 0011
C-4658