Penn National plans development program for the Tropicana

Regional casino operator Penn National Gaming said Thursday it will launch a development plan for the Tropicana Las Vegas that would take three to five years to implement.

The company announced in April it was acquiring the Strip resort for $360 million and the transaction is expected to close by the end of the year. Penn said the initial phase of the program would cost $20 million and include a technology upgrade to implement Penn's player rewards system.

Penn said it would also evaluate expanding the property's retail offerings, food and beverage outlets, and entertainment. The company would also consider expanding the hotel.

Penn discussed the Tropicana during the company's second quarter earnings announcement.

Penn said it was increasing the budget for its Hollywood Casino Jamul in San Diego to by $30 million to $390 million. The resort is expected to open next year. Penn has a seven-year management contract with the Jamul Indian Village for the casino that pays the company 30 percent of pre-tax profits and a 1.5 percent licensing fee for the Hollywood name.

Penn quadrupled its net income for the quarter that ended June 30 to $16.9 million, or 19 cents per share. Total revenue grew 7 percent in the quarter to $701 million.