Robert L. Johnson Joins Casino Partnership

Billionaire Robert L. Johnson's The RLJ Companies ("RLJ") announced it has joined with Pinnacle Entertainment, Inc. as an equity partner in its pursuit of a license for a gaming facility in Philadelphia. The agreement formalizes a letter of intent that the partners signed in July.

If approved by the Pennsylvania Gaming Control Board, Mr. Johnson would own approximately one-third of the proposed casino. "Our interests in the hospitality and gaming industries are an excellent fit with Pinnacle's goals for this project as an urban entertainment destination," Johnson said. "We bring additional financial strength and management expertise to the table. We view Pinnacle as the right partner based on their experience in both the development and operations of casinos and their commitment to minority participation."

Pinnacle has applied for a license to operate a casino along the North Delaware riverfront in the Fishtown neighborhood. The company has proposed a gaming entertainment complex that includes a multiscreen movie theatre, water feature/ice skating rink, a premier floating restaurant and a variety of eateries as well as retail shops and a walking path/promenade. The initial phase of the project is budgeted at between $300 million and $400 million.

"The Philadelphia market presents a remarkable investment and a chance to be a key part of the renaissance of one of America's great cities," Johnson continued. "We want to help Pinnacle create quality entertainment and a focal point that the city richly deserves."

Johnson is the founder of Black Entertainment Television (BET), the first African American-owned company listed on the New York Stock Exchange. Johnson is also one of the largest hotel owners in the U.S. and has interests in a spectrum of industries, including gaming interests in the Caribbean. The RLJ Companies, Johnson's holding company, owns businesses in the media and entertainment and financial services industries, including Caribbean Gaming and Entertainment, several private equity funds, a hedge fund of funds, Urban Trust Bank, Our Stories Films, and an NBA franchise, the Charlotte Bobcats.