Hollywood Park to Buy Casino Magic

Racetrack and casino operator Hollywood Park Inc. on Thursday said it has agreed to buy Casino Magic Corp., which runs a small chain of gambling riverboats and dockside casinos, in a deal valued at $344 million.

The agreement, which requires shareholder and regulatory approvals, is part of Inglewood-based Hollywood Park’s plan to expand in secondary gambling markets outside Las Vegas and Atlantic City, N.J.

It would pay $81 million, or $2.27 a share, for Casino Magic’s common stock and assume debt of $263 million. On Thursday, Casino Magic shares rose 38 cents to $2.06 on Nasdaq. Hollywood Park shares fell 69 cents to $14.25 on the New York Stock Exchange.